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Walgreens seems to be to bank card, monetary providers to drive loyalty and increase income

Walgreens looks to credit card, financial services to drive loyalty and boost revenue

Folks sporting masks stroll in a crosswalk close to a Walgreens on September 30, 2020 in New York Metropolis.

Alexi Rosenfeld | One other Billionaire Information

Walgreens stated Wednesday it should supply a rising listing of monetary merchandise for patrons — together with a co-branded bank card and a pay as you go debit card — because it tries to win extra of their wallets and assist them handle dear medical bills.

The bank cards will launch within the second half of this yr. They are going to be a part of the Mastercard community and issued by Synchrony. They are going to be linked to Walgreens’ new loyalty program, which the corporate relaunched in November with a brand new identify, perks and pandemic-inspired options, corresponding to curbside pickup and supply by means of DoorDash and Postmates.

Walgreens and its drugstore friends are adapting to fast-changing client behaviors which have accelerated through the pandemic. Walgreens has seemed to new enterprise alternatives, together with a take care of VillageMD to open a whole lot of major care clinics at its shops.

John Standley, Walgreens president, stated the corporate sees monetary providers as a kind of progress drivers, too. “As we proceed to give attention to creating new income streams, we stay up for exploring and introducing much more well being and well-being cost initiatives within the close to future,” he stated in a information launch.

It is the second main retailer this week to announce plans for increasing into monetary providers. Walmart stated Monday that it’s making a fintech start-up with Ribbit Capital, one of many enterprise capital companies that is backing Robinhood. The separate firm can be majority-owned by the big-box retailer.

The pandemic and recession have put stress on many households, who’re making an attempt to stretch their cash as they pay the payments and address decreased hours or unemployment. In the course of the holidays, for instance, a rising variety of shoppers seemed for different methods to finance their purchases. The usage of “purchase now, pay later” for on-line orders grew 109% through the vacation procuring season that spanned from Nov. 1 to Dec. 31, with the most important runup going down the ultimate week earlier than Christmas, in keeping with a latest report by Salesforce.

Affirm Holdings, a supplier of installment loans to internet buyers, will start buying and selling on Nasdaq later Wednesday.