Marks and Spencer (M&S) has agreed a seven-year deal with HSBC to improve the products it offers through M&S Bank.

The partnership will focus on the retailer’s credit offering, payments and loyalty schemes for M&S customers.

The move comes after it was reported last month that the retailer was in talks with HSBC to develop a financial services and loyalty “superapp” which would overhaul its banking business.

HSBC and M&S have been working together since 2004, with the partnership previously concentrating on modernising experiences for the department store’s customers.

The two companies have already worked on digitising rewards vouchers and launched Sparks Pay, which is a digital payment method using in-store QR payment technology.

They are now aiming to offer a “more connected” digital shopping experience, with M&S joining up rewards and digital payments to create a more personalised in-app experience where customers can shop and pay for goods as well as earn and redeem points.

M&S said that the needs of its customers are evolving and it hopes to meet these needs by offering more digital solutions and integrated products.

“The M&S financial services offering has continued to evolve and today we’re proud to combine market-leading lending and payment solutions with the M&S rewards enjoyed by so many customers,” said Jose Carvalho, head of wealth and personal banking at HSBC UK. “Together, we’ve created a unique offering designed specifically for M&S shoppers, and we’re looking forward to building on what has been delivered to-date as we continue to evolve to meet the changing payment and borrowing needs of millions of M&S customers.”

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