CIBC has announced that it has signed a long-term agreement to become the exclusive issuer of Costco Mastercards in Canada, expected to start in early calendar year 2022.
CIBC will also acquire the existing Canadian Costco credit card portfolio which has over $3 billion in outstanding balances. Mastercard will remain the exclusive payment network for the Costco cobranded credit card in Canada and acceptance in Costco warehouses in Canada.
According to CIBC, the portfolio acquisition significantly grows and diversifies CIBC's credit card portfolio in the everyday rewards category. This agreement with Costco will provide an opportunity to deepen relationships with new clients from across Costco's large and growing member base.