This is the second co-branded credit card Starbucks has executed. The Duetto card was in use 2003-2010. Users earned 1% on purchases and 3% on gift card reloads.
The co-branded credit card is another brand loyalty tool and another way to collect data on its customers. Co-branded credit cards accounted for 31% of all credit card purchases in 2014.
Credit card companies like co-branded cards because it gives them a built-in audience and "major sales channel" according to Fin. Investopedia says they're "designed to give the issuing bank access to the retailer's customer base."
Getting those cars in the hands of customers, however, is hard for some stores. According to Advantage Consulting, less than 4 in 10 may be approved. And many credit card companies require minimums of 15,000-20,000 cards issued.
Stores also like these cards because they make money off of them beyond the basic sale: (1) a bonus is paid by the credit card companies to the stores every time a new customer signs up, (2) stores don't have to pay a fee to the credit card company when the cards are used by their customers, and (3) they get a cut of the interest payments their customers pay to the credit card companies according to Fin.
Read more about co-branded store credit cards on the Mastercard and Visa co-branded card websites.