Canadian coffee chain Tim Hortons is entering the competitive rewards space by launching a new credit card that can be used through its mobile app.
The company’s new division, Tims Financial, announced in a press release that it will offer a no-annual-fee Mastercard powered by Neo Financial. The credit card is set to be launched in the coming months. And if you want one, you’ll have to get on a waitlist.
The card can be applied for, approved and managed entirely through the Tim Hortons app. It will let customers earn Tims Rewards Points on most purchases, including gas, grocery, transit, and extra points at Tim Hortons restaurants.
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“With almost five million Canadians actively using our Tim Hortons app every month, it became obvious that we could offer our most loyal guests a way to earn Tims Rewards Points even faster with everyday spending and higher points on most gas, grocery and transit purchases,” said Markus Sturm, Senior Vice President of Digital, Loyalty and Consumer Goods at Tim Hortons.
Tim Hortons will also introduce a secured credit card targeted at students, newcomers, and individuals with limited or no credit history. This card will allow users to earn Tims Rewards Points and potentially build their credit.
Sturm believes that the accessibility of the company’s rewards program sets it apart from competitors. Instead of requiring customers to save up for what he calls aspirational rewards, Tim Hortons allows them to easily accumulate points for more practical rewards like free coffee or food.
Speaking of free coffee or food, the move puts the spotlight back on the company’s app, which was previously found to have violated customer privacy laws when the app, for more than a year, secretly continued to track its users collecting geolocation data even when they were not using it.
The company settled the lawsuit with a coffee and a doughnut.
Information for this story was found via Time Hortons, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
