What: Saks Fifth Avenue is transferring its credit card portfolio to Bread Financial, a tech-oriented financial services company.

Why it is important: This move aims to enhance the payment experience for Saks customers through Bread Financial's advanced digital capabilities and marketing expertise, providing a more integrated and personalized shopping journey.

Saks Fifth Avenue is set to transfer its credit card portfolio to Bread Financial, replacing the current issuer, Capital One, with the transition expected to be completed by Q3 2024. Bread Financial will manage the credit card program for both Saks and Saks Off 5th, offering and supporting the existing Saks World Elite Mastercard and Saks credit card. Customers will benefit from Bread's digital capabilities, making it easier to sign up for and use their Saks credit cards. Additionally, Bread will leverage extensive data and consumer insights to enhance customer engagement and loyalty through targeted marketing campaigns. This transition occurs amidst rising national credit card delinquencies and Saks' potential acquisition of the Neiman Marcus Group.

Saks Fifth Avenue credit card portfolio to transfer to Bread Financial