Ollie’s Bargain Outlet Holdings Inc. is launching a co-branded Visa credit card in partnership with Los Angeles-based fintech Sunbit. The card is designed to build on Ollie’s loyalty program, Ollie’s Army, which has about 14 million members.
The card’s features include a $10 statement credit for signing up and extra Ollie’s Army points on purchases at Ollie’s and other places where Visa is accepted. The card also is easier to qualify for, offering what a press release described as “industry-high approval rates — making it the perfect match for Ollie’s customer needs.”
There are no fees for the card, not even for late payments.
Sunbit operates a “24/7 human-centered call center” in Las Vegas that works with customers to ensure timely repayment and create flexible options that work for them, said company spokesperson Meaghan Shields.
Interest rates and terms are set based on each customer’s credit profile, Shields said.
“In general, we find that people want to do the right thing, and they pay their bills in a timely fashion,” she said. But, she added: “If customers cannot ultimately find a solution, their card will not accept new purchases and nonpayment will be reported to the credit bureau.”
Tom Kuypers, an Ollie’s spokesperson, described Sunbit’s call center as the “gold standard.”
“There is a reason Sunbit is one of the fastest growing financial technology companies in the country,” Kuypers said. “It has cracked the customer experience code in an entirely new way for the consumer lending industry.”
Founded in 2016, Sunbit also offers a separate “buy now, pay later” product, which is used in the auto repair and dentistry markets, among others.
To support its growth, the company closed in January on a $310 million debt warehouse facility led by Citi and Ares Management Credit.
Why is this happening: Ollie’s has been aiming to expand and leverage Ollie’s Army as part of its growth strategy, according to its annual report, which acknowledges that competition for discount shoppers is fierce.
One goal is to increase store visits by Ollie’s Army members, who typically spend more per visit than other customers.
Ollie’s had sales of $2.1 billion in the fiscal year ending Feb. 3, up from $1.8 billion for the previous year. Net income rose to $181.4 million, up from $102.8 million.
The Harrisburg-based discount retailer employs more than 10,000 people and operates 520 stores in 31 states. It is planning to reach 1,300 stores.
