Another non-bank moves into the banking arena after retailer Woolworths signed a deal with HSBC to issue the Woolworths’ credit card, due for release later this year.

The deal was a result of a global tender process undertaken by Woolworths’ financial services team last year.

“HSBC is a global leader in credit cards with world class technology and expertise,” Michael Luscombe, Woolworths’ CEO, said.

HSBC has long-term successful partnerships with large retailer card programs overseas, such as, Marks & Spencer’s in the UK and Saks in the USA.

“HSBC manages over 125 million credit cards worldwide, with established co-branded and white label alliances with over 100 of the world’s most respected companies, “ Stuart Davis, chief executive of HSBC Bank Australia, said.

Luscombe noted, “HSBC’s experience makes it a perfect partner for Woolworths to leverage our unique distribution reach and customer base in Australia.”

Woolworths stores process 114 million transactions or 11 per cent of all credit card transactions in Australia each year.

The companies are expected to sign a formal agreement by the end of first quarter 2008.

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