M&S rolls out digital credit accounts for Sparks customers

Marks & Spencer has launched a new digital payment method exclusive to its loyalty scheme members.

Sparks Pay, developed in conjunction with M&S Bank, is the new payment feature available to Sparks users that lets them borrow up to £500 to use on multiple purchases.

Initially rolling out as a phased launch across M&S.com and the M&S app, Sparks Pay is a regulated digital credit account which can be used for purchases within M&S only.

The digital credit platform lets customers apply and receive an instant online credit decision for up to a maximum of £500, with up to 45 days’ interest-free credit.

Customers will also get up to 76 days interest-free on their first order when they pay their balance in full, and up to 45 days for later transactions.

Some of the Sparks Pay features include one-click payments and balance tracking. If the online trial proves successful, the retailer will roll out the digital payment method to stores nationwide in 2023.

“We’re excited to be offering a new and simple way to pay for Sparks customers that is fully integrated with M&S and offers a seamless online shopping and payment experience, further expanding ways to pay at M&S,” said M&S Bank CEO Paul Spencer.

“As a responsible lender, full credit and affordability checks are in place, enabling us to offer an instant credit account which can be used on multiple purchases, up to a maximum of £500, for those who love to shop online at M&S.”

M&S said this was a way to make its Sparks scheme more relevant and establish it as “the gateway” for customers to access further services, products and rewards.

The move is also part of the retailer’s push to offer a more personalised and digitally-driven customer experience. Since relaunching the Sparks loyalty programme two years ago, the number of users has more than doubled from seven million to just under 16 million.

Additionally, M&S will be tapping the growth of its e-commerce operations. M&S.com currently makes up just over a third of all clothing & home sales.

The company already offers a credit card option to customers, M&S Credit Card, in partnership with its bank division.

M&S director of services Kirsty Ward said: “We are excited to debut Sparks Pay, another new benefit for our Sparks customers.

“We are setting out to create better connected and smoother payment solutions across M&S.com, our app and stores nationwide, and today marks our first new solution, an easy-to-manage and secure credit option providing a seamless checkout experience.”