Walgreens doubles down on financial services with banking offering

Walgreens is getting into the digital-banking-as-a-service business.

The drugstore giant is teaming up with global payments technology InComm Payments to provide its customers with digital bank accounts at MetaBank. The accounts will include a Mastercard debit card shoppers can use in-store and online and allow them to earn cash rewards on all purchases as part of the new myWalgreens customer loyalty program launched in November 2020.

This agreement is part of Walgreens’ recently announced broader initiative to launch new financial products and services. The initiative also includes a co-branded credit card and a prepaid debit card issued with Synchrony and Mastercard. 

The new Walgreens financial solution leverages InComm Payments’ digital banking-as-a-service platform. Walgreens shoppers will be able to find the product in-store or sign up directly online, and then manage their finances in a new mobile banking app. The bank account is expected to be available at nearly 9,000 Walgreens stores and online in the second half of 2021.

In addition, Walgreens and InComm Payments plan to relaunch the Walgreens-branded gift card program. InComm Payments will oversee management of Walgreens’ existing physical gift card program, launch Walgreens’ digital gift cards, and enable digital purchase and redemption on walgreens.com. InComm Payments will also facilitate broader distribution of the Walgreens gift card across B2B, loyalty, rewards and e-commerce channels. 

“Walgreens is committed to helping customers with their health and well-being needs, and we’re pleased to expand our financial services offerings to further enrich the experiences and ways we meet customers’ financial needs,” said John Standley, president, Walgreens. “We look forward to exploring and introducing even more customer-focused health and well-being payment initiatives in the near future, while creating new revenue streams.”

“We’re honored that Walgreens has selected InComm Payments’ financial services solutions to provide further benefits to its customers and communities,” said Stefan Happ, president of InComm Payments. “This new product offering will establish Walgreens as a destination for financial services, building on Walgreens’ legacy as a one-stop shop for pharmacy and convenience.”

Walgreens operates more than 9,000 retail locations across the U.S., Puerto Rico, and the U.S. Virgin Islands.