Walgreens (NASDAQ: WBA) announced Wednesday that it will be adding several financial products for its customers such as co-branded credit cards and a prepaid debit card. As the company struggles throughout the pandemic, the novelty is meant to retain customer loyalty and aid in the management of expensive medical costs.
Set to launch at the end of the year, the Walgreens card will be issued by Synchrony on the Mastercard Network. The credit card will provide cash rewards associated with the new customer loyalty program. Furthermore, the card is set to offer benefits, like accelerated rewards when shopping in the health and wellness category, even when purchasing at other retailers or service providers.
Amid the ongoing pandemic, Walgreens as well as other retailers are modifying their business to keep up with customer behaviors. The pharmacy has even ventured off and agreed to a deal with Village MD to open hundreds of primary care clinics within its locations.
Walgreens president, John Standley, said that the company views financial services as potential for growth. “As we continue to focus on creating new revenue streams, we look forward to exploring and introducing even more health and well-being payment initiatives in the near future,” he said in a news release.
Throughout the pandemic, the use for “buy now, pay later” in online orders skyrocketed 109% during the holiday season. As the economic downturn continues, families are searching for ways to play with their remaining funds and finance their purchases.
Just this week, Walgreens is the second major retailer to reveal plans of delving into financial services.