Seeking to capitalize on society’s growing focus on health as the pandemic drags on, Walgreens on Monday launched a
Cardholders this fall also will be offered a debit account, part of both companies’ efforts to expand into new consumer banking services.
Few details are available about the digital debit account, which will be closely linked to the credit card for managing purchases and rewards through the Walgreens app, according to Maria Smith, Walgreens’ vice president of payments and financial solutions.
“We’ll be announcing a separate brand for the debit account, but it complements the credit card and will expand mobile money capabilities for customers beyond the store,” said Smith, who joined Walgreens seven months ago after stints at Starbucks, where she worked on the coffee giant’s cobranded credit card, and at Expedia.
The myWalgreens credit card is available as a private-label card or a cobranded Mastercard based on customers’ credit profiles, Synchrony said. Both versions of the card include 10% cash back for Walgreens-branded purchases, as well as 5% back on other purchases at Walgreens and items from Walgreens’ pharmacy.
A unique twist to the program is 3% cash back for myWalgreens Mastercard customers for purchases grouped around the concept of wellness instead of specific categories like travel or gasoline.
Items that qualify for 3% cash back include visits to doctors and other health care providers; veterinarian services for pets; fees for gyms, golf courses or other fitness and recreation activities; beauty salon services; and purchases of sporting goods and apparel or medical equipment. Grocery purchases are also included.
“As far as we know this is the first rewards card to position itself around rewarding people for how they live, emphasizing health and wellness,” said David Parkes, Synchrony’s senior vice president of cobrand.
Synchrony is using an array of digital tools to promote the myWalgreens cards, including having a store clerk push a card application link to consumers’ phones at the point of sale.
Consumers also can apply online or by scanning a QR code displayed on signs in Walgreens stores or elsewhere. Synchrony’s dApply technology instantly authenticates customers and runs a credit check for approval within about two seconds, Parkes said.
Once approved, consumers can use a digital version of the card in the mobile app to shop immediately in Walgreens or online. New customers receive $25 in Walgreens Cash when they’re approved for the card, which has no annual fee.
Walgreens, with more than 9,000 Walgreens and Duane Reade stores, represents a strong opportunity for Synchrony to build volume with everyday shoppers, after the Stamford, Connecticut-based lender parted ways with Walmart in 2018.
“We have high hopes for this card to scale,” said Parkes.
Synchrony currently doesn’t offer installment loans like those fueling the rapidly expanding buy now/pay later sector, but it’s a service they’re investigating, Parkes said.
“We’re very interested in BNPL, and clearly there’s a lot of demand for it. Suffice it to say we’re watching the space,” Parkes said.
