Tim Hortons to launch credit card through mobile rewards app

TORONTO –

Tim Hortons is launching a bank card that can be utilized by means of its cellular app, the newest transfer into an more and more aggressive rewards area.

Tims Financial is a brand new division of Tim Hortons that may provide a no-annual-fee Mastercard powered by Neo Financial, the corporate stated in a press launch Wednesday. The card can be launched within the coming months, however clients can join a waitlist on the Tims Financial web site.

Customers will be capable to earn Tims Rewards Points on most purchases, together with on many fuel, grocery and transit purchases, and additional factors at Tim Hortons eating places.

“There’s millions of Canadians who are actively seeking better and accessible financial products,” stated Markus Sturm, senior vice-president of digital, loyalty and client items at Tim Hortons, which is owned by Restaurant Brands International.

The Tims Rewards app already has options like cellular order and scan and pay, making a brand new fee possibility the logical subsequent step, stated Sturm.

Other corporations have additionally been pushing additional into the intersection of rewards and bank cards to construct buyer loyalty, together with BMO’s latest buy of Air Miles, whereas Scotiabank has been increasing its Scene Plus rewards program in partnership with Cineplex Inc. and RBC relaunched its Avion Rewards program final 12 months.

Canadian Tire rolled out its Triangle Mastercard rewards program a couple of years in the past and in March introduced a paid tier providing additional enhancements to this system.

Tim Hortons will even provide a second model of its bank card aimed toward college students, newcomers and others with restricted or no credit score historical past.

This secured bank card will earn Tims Rewards Points and should assist customers construct their credit score, the corporate stated.

The bank card administration can be totally embedded into the present rewards app, stated Sturm, together with making use of for the cardboard and viewing statements. However, clients may load the cardboard to a digital pockets like Apple Wallet, he stated, they usually may obtain a bodily card.

Almost 5 million Canadians are utilizing its app each month already, Tim Hortons stated within the launch, and the corporate believes its new card can be a beautiful possibility for a lot of of them.

Brands have been more and more providing not solely rewards packages but in addition linked monetary providers and bank cards, however Sturm stated he thinks the Tim Hortons rewards program stands out due to the accessibility of its rewards. Instead of saving up for what he calls extra aspirational rewards, Tim Hortons clients can simply rack up sufficient factors to get a extra tangible, sensible reward like free espresso or meals, he stated.

Retail analyst Bruce Winder stated whereas the marketplace for rewards packages and linked bank cards is “incredibly crowded,” the Tims Financial launch sounds attention-grabbing.

“I don’t think it’s a bad move,” he stated.

“I think it’s bold, and we’ll see what happens with it.”

Launching rewards-linked bank cards could be a profitable play for manufacturers if it goes properly, stated Winder, with extra alternatives to collect knowledge and incentivize model loyalty.

Tim Hortons wished to supply an inclusive monetary product for folks with restricted or no credit score historical past, stated Sturm.

“We want to support them just like we do in fuelling their day with coffee and beverages and food,” he stated. “We also want to fuel their growth to financial prosperity and give them options to help build their credit.”

The secured bank card may very well be what helps this system stand out amongst opponents, Winder stated, as college students and new immigrants to Canada will doubtless have an interest.

“Any time you can get a differentiator from your competition, it’s very valuable,” he stated.

But the mainline bank card is perhaps a tougher promote amid the noise, he stated.

“How many credit cards do you need?” stated Winder. “It starts to get just too much … you’ve got everyone with their own credit card.”

The Tim Hortons rewards app was within the highlight round a 12 months in the past after an investigation by federal and provincial privateness watchdogs discovered the app had violated the legislation by gathering giant quantities of location info from clients. The app was discovered to repeatedly observe customers no matter whether or not they had been utilizing it, although this observe stopped in 2020. Tim Hortons agreed to implement suggestions that it delete remaining location knowledge, set up a privateness administration program for apps, and report on measures it took to adjust to the suggestions.

Sturm stated the corporate has made numerous modifications for the reason that report back to strengthen privateness by means of “highly reputable external partners” and an inner overview, in addition to bettering communication across the firm’s privateness coverage, which has additionally been up to date.

“Everything that we’ve done for Tims Financial has taken all that progress into account and frankly added additional security and safety measures,” he stated.

Despite the info situation, which might deter some folks from getting a bank card with the restaurant, Winder stated Tim Hortons has an total wholesome model that individuals belief, and many individuals go there each day.

“Time will tell,” he stated. “Great brand, massively powerful in Canada, and we’ll see how this works out.”

This report by The Canadian Press was first revealed June 7, 2023