Dillard's Forges Strategic Partnership with Citi and Mastercard for Reimagined Credit Card Program

In a significant move within the retail payments landscape, Dillard’s has unveiled new partnerships with Citi and Mastercard to overhaul its credit card offerings. Under the restructured agreement, Citi will assume ownership of the existing Dillard’s credit card portfolio, while Mastercard will function as the primary payment network for all co-branded card products rolling out under the revamped program.

Program Architecture and Customer Benefits

The revitalized Dillard’s credit card initiative will feature two distinct offerings: a co-branded Mastercard designed for broader appeal, and a private label card tailored for core customers. The co-branded Mastercard will supersede the current co-branded product, bringing enhanced capabilities to the table. Beyond card issuance, Citi will manage customer support operations and collaborate with Dillard’s on marketing initiatives and loyalty program enhancements.

Alex Dillard, President of Dillard’s, emphasized the strategic importance of this collaboration: “Our customers deserve access to world-class financial products and premium credit services. By partnering with industry leaders, we’re ensuring that Dillard’s cardholders receive best-in-class experiences and competitive rewards.”

Financial Institution’s Perspective

Kartik Mani, who leads Citi’s retail services division, highlighted the appeal of the partnership: “We’re excited to collaborate with such an established retail institution. This long-term engagement allows us to deliver cutting-edge digital banking solutions, attractive rewards programs, and flexible credit access to a loyal customer base.”

Mastercard’s Jason Lane added that the arrangement aligns with evolving consumer expectations: “Modern shoppers demand more than transactional convenience—they seek rewards, security, and personalized benefits from trusted partners. Our collaboration will deliver seamless payment experiences that integrate with customers’ everyday lifestyles.”

Implementation Timeline and Next Steps

The rollout will unfold in phases. New applicants will gain access to the redesigned Dillard’s credit card program starting in late summer 2024. The migration of existing cardholders to Citi’s platform is slated for fall 2024, ensuring a smooth transition for the current customer base.

Greenhill & Co. provided financial advisory services, while Morrison Foerster handled legal documentation for Dillard’s throughout the negotiation process.

This reshaping of Dillard’s credit card ecosystem reflects broader industry trends toward consolidation and digital-first banking solutions, positioning the department store chain to compete more effectively in an increasingly digital retail environment.