M&S supercharges banking services and loyalty programme with new ‘superapp’

Just as Sainsbury’s and Tesco announce they are leaving the world of banking behind; Marks & Spencer is setting out to dominate the market with a new 'superapp' powered by HSBC.

M&S and HSBC, whose UK arm owns M&S Bank, are set to announce a new long-term relationship agreement before the expiry of their current contract, according to Sky News.

Currently, M&S Bank has over three million users, to which it offers personal loans, travel insurance, store payment cards and buy now pay later credit.

A source revealed that a public announcement about the new partnership is expected to happen next month. In the long term, M&S plans to establish a 'superapp' encompassing financial services and the retailer's Sparks loyalty programme.

With this upcoming announcement, the retailer takes strides to dismiss rumours that it will follow in Sainsbury's and Tesco's footsteps by ditching its financial services.

In January, Sainsbury's announced that it was closing down its banking business after nearly 30 years. Last month, Tesco announced it would sell its bank to Barclays in a deal worth £600 million.

This follows the news that Freemans is also foraying into the world of finance with the introduction of a new customer credit offer, Flexi3. The buy now pay later scheme gives customers the option to split payments over three months, with no interest or spread the cost over a longer term. This is in addition to paying nothing for the first five weeks.