Alliance Data Systems is developing a co-branded credit card and a private-label credit card program with Sweden-based Ikea’s U.S. furniture store operations.

The Plano, Texas-based financial services and loyalty marketing company will create a rewards program for the co-branded credit card enabling customers to earn points for both Ikea purchases and everyday purchases without an annual fee, according to a Tuesday press release.

Ikea store
Bloomberg News

Alliance Data also is creating the new private-label Ikea Projekt Card for financing large purchases and renovations, designed for installment payments, the company said in the release.

The move marks Ikea's first co-branded credit card in the U.S., and Alliance Data has not finalized its card network partner on the venture, a company spokesperson said.

Ikea previously offered a private-label credit card in the U.S. issued by GE Money Bank. Synchrony Financial assumed the furniture retailer’s receivables after GE spun off its consumer credit operations in recent years, though no new Ikea cards were issued.

Ikea has 362 stores worldwide, including 47 in the U.S.

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