IKEA Launches a New Rewards Credit Card
Today, IKEA is launching a new loyalty rewards card that can be used in store and on everyday transactions. The IKEA Visa Credit Card provides 5% back on IKEA purchases, as well as 3% back on dining, utilities, and groceries. All other purchases earn 1% back.
The rewards program is set up like a cashback credit card, but the ‘cash’ can only be used toward IKEA purchases. If someone spends $100 at IKEA, he earns $5 in IKEA credit. Spend $100 on groceries at Whole Foods and get $3 in IKEA credit.
Additional perks include: $25 off the first IKEA purchase made with the card, free shipping and delivery for card transactions through August 31, and $25 in bonus rewards after spending $500 on the card outside of IKEA in the first 90 days. Interested applicants can apply for the IKEA credit card on the store’s website. There is no annual fee for the card, but like a number of retail credit cards, it does carry a high APR: 21.99%.
“The IKEA Visa card can be added into mobile wallets and used at merchants where contactless payment is accepted,” said Janice Simonsen of IKEA.
This credit card is part of a much larger plan for the store. IKEA is working to provide more affordable financing options for home remodeling projects and home furnishings. The company launched the IKEA Projekt Card in February. This is a 60-month special financing solution for costly renovations, such as kitchen and bathroom renovations. They also lowered their shipping prices and created a new “Click & Collect” online order program.
IKEA has 47 locations in the United States and stores in 28 other countries.