Will new cash-back cards deliver healthy returns for Walgreens?
Walgreens announced on Monday the launch of its new myWalgreens Credit Card program, which features two “industry-first retail health and wellness credit cards.”
The two cards — a myWalgreens Mastercard and a private label myWalgreens option — provide cash-back rewards at the drugstore’s 9,000 stores, on its website and via its mobile app and can be used wherever Mastercard is accepted. Cash-back rewards are not the sole story, however, as the card has been designed to provide specific benefits for cardholders making purchases and engaging in activities that benefit their health.
“Most credit cards reward customers for what they buy, but not how they live,” Maria Smith, vice president of payments & financial services at Walgreens, said in a statement accompanying the card’s launch. “The myWalgreens Credit Card aims to change that through building upon the strength of our myWalgreens loyalty platform and app experience, while cardholders can earn up to 10 percent Walgreens Cash rewards for making healthy choices.”
Ms. Smith told RetailWire that the card program represents “the latest expansion of Walgreens financial services offerings, which also include the myWalgreens mobile wallet, Walgreens remittance services, ATM and third-party banking services.” The cards will seamlessly integrate with Walgreens’ programs including “curbside pickup, integrated pickup, same-day delivery and same-day prescription delivery.
The new myWalgreens cards do not charge an annual fee and allow cardholders to earn 10 percent back on eligible purchases of the drugstore chain’s private label products and five percent on other eligible front-of-store and pharmacy purchases.
The rewards do not stop at Walgreens — cardholders earn three percent when they buy eligible grocery, health and wellness products elsewhere, including visits to healthcare providers. The card offers one percent rewards on all other eligible purchases.
Customers opening accounts will receive $25 in Walgreens Cash rewards after making a purchase with the card within the first 45 days.
The cashback benefits that cardholders receive offer greater rewards than those from the retailer’s myWalgreens loyalty program. The retailer announced last November a reinvention of its previous program with members earning five percent for store brands and one percent for all other purchases made storewide. Program members would also receive personalized “Only for you” deals as a perk, as well.
- Walgreens Launches Industry-First myWalgreens Credit Card Program – The Credit Card That Pays Well to Stay Well – Walgreens
- Walgreens reinvents its loyalty program, launches 30-minute pickup service – RetailWire
DISCUSSION QUESTIONS: Are the financial benefits or the consumer data derived from credit card usage linked to loyalty programs of greater value to retailers? Will the myWalgreens card’s health and wellness angle prove a strong draw for the chain’s customers?