Marks & Spencer’s banking arm has struck a new deal with HSBC to bring together digital payments and loyalty and create a more personalised experience for customers.

The seven-year arrangement with existing partner HSBC should allow Marks & Spencer to combine rewards, its Sparks loyalty programme, digital payments and credit “to create an easier to access and more personalised in-app experience. It will enable customers to ”shop, pay, earn and redeem rewards all in one place”.

The initiative matters because the retailer’s 2 million credit card users are some of its most loyal customers. They spend more than non-cardholders and account for 16% of M&S’s turnover.

M&S Bank chief executive Paul Spencer said: “Our customers’ shopping and payment needs have continued to evolve in recent years and offering more digital solutions and greater integration is key to meeting these needs.

“To support this, over the past year, we have launched the digital payment solution, Sparks Pay, for use across all M&S stores, in addition to shopping via M& and the app.

“It has been fantastic working with our M&S retail partners to ensure our customers get the best and most integrated customer experience and we’re excited about the potential of what’s to come.”