Shein launches a credit card, accompanied by a loyalty program. It is a Mastercard developed by the Mexican fintech Stori.
After launching into retail, the Chinese fast-fashion giant Shein is now also in finance. He has announcement this Tuesday launch a credit card, worldwide.
It works with a loyalty points system. For each purchase made with the card, customers earn points. For purchases made on Shein itself, they earn double points. These points can then be spent on the Shein platform, but only remain valid for 90 days.
Mexican fintech
The card, a Mastercard, and the payments and credit system are provided by Mexican fintech Stori. The two actors hope to be able to establish a mutually beneficial relationship. On the one hand, attract more people to the credit market (including Mexicans, who are even less present there than in other countries). On the other, attract more customers to the fast-fashion giant.
Stori has already been able to quickly progress on the domestic market: in four years, the fintech has gained three million customers. It is particularly known for its savings accounts which have an interest rate of 15% (the deposit rate of the country’s central bank is 4.70%). It also says it grants 99% of credit card applications, with few requirements, whether people have a credit history or not. There are no annuities on the Shein credit card (nor any others the company offers), but we couldn’t find out if any overhead fees apply, as they do in Belgium.
The choice of Mexico is perhaps not insignificant. It is one of the fastest growing digital commerce markets in the world. And Shein plans to build a factory there, which would allow it to circumvent American customs duties that apply to imports from China.
It remains to be seen whether the offer will succeed in convincing customers on other continents. If the service is successful in Central and Latin America, we could in any case imagine that Shein could repeat such a collaboration with local suppliers in other geographical areas.
Visual appearance of the map. Image: Stori.
