Amazon teams with HBOS for credit card

Amazon.co.uk and Halifax Bank of Scotland (HBOS) have launched a co-branded credit card.

The Mastercard offering has a loyalty scheme which returns 1 per cent of the value of goods spent on Amazon sites and 0.5 per cent of spend elsewhere in the form of Amazon vouchers.

Amazon.co.uk and HBOS in a statement today described the card as "part of a long-term alliance to offer customers exceptional products, services and savings".

A pound spent on Amazon sites equates to one point, with 1,500 points earning a £15 Amazon.co.uk gift certificate.

The card has the now customary no annual fee and 0 per cent interest for the first six months after balance transfers, rising to 12.9 per cent per annum thereafter. Those that sign up for it before the end of the year will receive a £20 Amazon.co.uk voucher.

HBOS said the deal shows it is one of the leading online credit card providers.

However, the teaming comes as loyalty schemes such as Nectar - backed by a number of major companies, most with an online presence - have been called into question. And in direct competition, online credit card pioneer Egg has deals in place with e-tailers of different goods and services such as wine, electronics and travel.