Lombard signs on with IKEA as it looks to break HSBC & GE stranglehold

By Patrick Avenell

Lombard Finance, which has for several years been looking to break HSBC and GE’s duopoly in the electrical retail credit industry, has been appointed the interest-free credit provider for IKEA Australia.

Under the terms of this agreement, IKEA customers can receive 6 months interest free on purchases between $300 and $4,999 and 24 months interest free on purchases between $5,000 and $20,000. Lombard Visa cards will be available for future purchases.

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Globally, HSBC is the interest free credit provider for IKEA, and also for IKEA’s franchises in Perth and Adelaide. In electrical retailing, HSBC provides financial services for JB Hi-Fi, Winning Appliances, Betta Electrical and selected Retravision stores, amongst others. GE Money is the interest free credit provider for the Derni Group, which includes Harvey Norman, Joyce Mayne and Domayne stores.

In a statement, Lombard executive Paul Vanni said he hoped IKEA consumers would find the application process more user-friendly than those offered by rivals. At the point of purchase, Vanni claimed greater efficiency due to Lombard’s digital infrastructure.

“Our electronic signing process is a market first and will enable us to handle the anticipated high volumes effectively," Vanni said.

IKEA Australia CFO Aaron Musca said the appointment of financial services provider was market driven.

"The development of this customer offer has been driven by consumer demand and IKEA’s desire to deliver the best possible shopping experience and payment flexibility to its loyal customers,” Musca said.

“This interest-free offer will be available at every IKEA store in NSW, Victoria and Queensland, including our new flagship store at Tempe, NSW.”

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