Walgreens is expanding into financial services as it looks to drive loyalty.
The drug store retailer will launch a co-branded credit card and a prepaid debit card. The credit card, which will be issued by Synchrony and powered by the Mastercard network, will be available in the second half of the year. The debit card issuer has not been made official yet, but will be powered by Mastercard. They will be the first in a range of new financial products and services planned by Walgreens.
Walgreens announced the new offering on the heels of news that Walmart is creating a fintech start-up with Ribbit Capital, one of the venture capital firms behind Robinhood.
The new credit cards will link to Walgreens new customer loyalty program — myWalgreens — which launched in November 2020, and cardholders will be able to receive myWalgreens cash rewards and other offers. Additionally, the flagship, co-branded credit card will offer a wider range of benefits provided through Synchrony and Mastercard when used at other retailers and service providers.
Walgreens said it plans to explore a number of Mastercard solutions across the payments technology ecosystem, including services such as insight and analytics, customer engagement and loyalty, cybersecurity, and point-of-sale financing, including installments.
“As we continue to focus on creating new revenue streams, we look forward to exploring and introducing even more health and well-being payment initiatives in the near future,” said John Standley, president, Walgreens.
Eligible customers will be able to use the Walgreens credit card for purchases at more than 9,000 Walgreens stores, Walgreens.com and via the Walgreens mobile app. They will have access to contactless shopping experiences and mobile-first money management features as well as the opportunity to earn accelerated rewards. The same customers will also be able to use the flagship, co-branded credit card to make purchases at other retailers and places of business wherever Mastercard is accepted, and earn rewards, including accelerated rewards when shopping products in the health and wellness category.
“Synchrony is proud to be Walgreens’ partner of choice for this new Walgreens Mastercard,” said Brian Doubles, president of Synchrony. “Walgreens champions the health and well-being of communities, and with our technology and healthcare financing expertise, we will join forces to create convenient payment solutions and digital experiences to help customers pay for their everyday purchases.”