Shein rolls out credit card in Mexico, with more likely on the way

The news: Chinese ecommerce giant Shein launched a co-brand credit card in Mexico, its first credit card, per Reuters.

• Shein partnered with Mexican fintech Stori on the card, which will run on the Mastercard network.
• Cardholders will earn points on every purchase that they can then redeem on Shein’s site. They will receive double the points for purchases made through Shein.

Why this matters: Shein has exploded in popularity in recent years, disrupting the fast-fashion industry. It’s preparing for a London IPO, reportedly aiming for a $64 billion valuation. Given its meteoric success, launching a credit card makes sense for the company as it tries to keep up with Amazon.

The decision to launch its first credit card in Mexico was likely driven by a few different factors:

• The retailer has found success in the region, and it’s reportedly mulling building a plant in Mexico to boost growth in the region.
• Shein also likely wants to capitalize on Mexico’s quickly growing ecommerce market: The country’s retail ecommerce sales are expected to grow 15.7% YoY in 2024 per our forecasts.
• And much of Mexico’s credit card market remains untapped: More than two-thirds (70%) of adults in Mexico don’t have a credit card, per Kueski Pay.

Our take: This credit card is just the start of Shein’s credit card ambitions. It will likely launch similar card programs in its other major markets like the US. Shein was the top US apparel retail site in terms of unique visitors in June.

It could also encourage other Chinese companies, like Temu, to launch credit cards globally.