Ikano Bank UK and IKEA win award for “unique hybrid product that gives IKEA a competitive edge”

11 MAY 2022

Ikano Bank and IKEA have won the Best Consumer Credit Card or Credit Facility at the 2022 Card & Payment Awards for IKEA Finance Services, a “unique hybrid product that gives IKEA a competitive edge”.

The product was also Highly Commended in the Best Industry Innovation category at the awards, which recognise excellence in the card and payments industries.

IKEA Finance Services launched in May 2021 just as stores were reopening after the pandemic as a fully digital, hybrid product that is neither an instore credit card nor a typical interest-free credit (IFC) option. The offer combines the best features of both, while avoiding their respective pitfalls and limitations.

It allows IKEA customers to apply for an interest-free loan from £99 to £15,000 to spend across the store, with the option to spread the cost over a number of months or years.

The judges said: “Ikano Bank and IKEA Finance Services proved to be a stand-out winner, with good evidence of innovation and creativity to increase the opportunity for a credit solution for their consumers. “This is real innovation with close attention paid to customer communication. The product has all the hallmarks of ‘staying on-brand’ with impressive numbers so early into launch.”

Paul O’Leary, UK Country Manager, said: “We set out with IKEA to create an innovative new finance proposition that preserved IKEA’s brand values of values of simplicity, good design and affordability. The result is a product that sets a new benchmark for responsible lending while delighting customers.”

Customers can apply for a loan through the IKEA Finance app or IKEA website.