Tim Hortons gets in on the rewards card game with new Mastercard offering
Proactive Investors
Published Jun 08, 2023 11:17
Tim Hortons gets in on the rewards card game with new Mastercard offering
Proactive Investors - Iconic Canadian coffee chain Tim Horton’s is launching a new credit card that customers can use through the restaurant’s mobile app, the company announced.
The move is Tim Horton’s foray into the crowded rewards space. Customers can use the card to earn Tims Rewards Points on most purchases including gas, groceries, transit and extra points at Tim Horton’s locations.
The no-annual-fee Mastercard (NYSE:MA) will be run by Tims Financial, a new division of Tim Hortons (TSX:THI), and powered by Neo Financial, the company said Wednesday.
The card isn’t available yet, but customers can join a waitlist on Tims Finacial’s website. For now, the Tim Hortons (TSX:THI) app currently offers mobile ordering and scan and pay features to its roughly 5 million monthly users.
“There’s millions of Canadians who are actively seeking better and accessible financial products,” said Markus Sturm, Tim Hortons senior vice-president of digital, loyalty and consumer goods.
Tim Hortons is far from the only company jockeying for the credit card slots in customers’ wallets.
A few years ago, Canadian Tire (TSX:CTCa) rolled out its Triangle Mastercard rewards program, and in March the company added additional enhancements to the program.
Meanwhile, financial services company BMO (TSX:BMO) acquired of Air Miles to help build customer loyalty, Scotiabank (TSX:TSX:BNS) has expanded its Scene Plus rewards program and RBC (TSX:RY) relaunched its Avion Rewards program in 2022.
Sturm believes the Tim Hortons card will stand out because it will easily allow customers to earn enough points for free coffee or food, rather than dangling higher-value, more aspirational rewards further out of reach.
Ideally, the card would be useful for people with limited or no credit history, he said.
“We want to support them just like we do in fuelling their day with coffee and beverages and food,” Sturm said. “We also want to fuel their growth to financial prosperity and give them options to help build their credit.”
The company also wants to put behind it a controversy from last year in which the Tim Hortons app was found to have illegally collected location information from customers. The app tracked users' locations regardless of whether they were using the app or not. That practice stopped in 2020, and Tim Hortons agreed to implement privacy changes, according to reports.
“Everything that we’ve done for Tims Financial has taken all that progress into account and frankly added additional security and safety measures,” Sturm said.
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