Walgreens looks to credit card, financial services to boost revenue

Walgreens stated Wednesday it should supply a rising listing of financial merchandise for purchasers — together with a co-branded credit 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 playing cards will launch within the second half of this 12 months. They can be a part of the Mastercard community and issued by Synchrony. They can be linked to Walgreens' new loyalty program, which the corporate relaunched in November with a brand new title, perks and pandemic-inspired options, resembling curbside pickup and supply via DoorDash and Postmates.

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

John Standley, Walgreens president, stated the corporate sees financial services as a type of development drivers, too. "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 stated in a information launch.

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

The pandemic and recession have put strain on many households, who’re making an attempt to stretch their cash as they pay the payments and deal with diminished hours or unemployment. During the vacations, for instance, a rising variety of shoppers regarded for different methods to finance their purchases. The use of "buy now, pay later" for on-line orders grew 109% in the course of the vacation procuring season that spanned from Nov. 1 to Dec. 31, with the largest runup going down the ultimate week earlier than Christmas, in accordance to a current report by Salesforce.

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

Here's what traders want to know forward of Affirm's IPOSquawk Box

primarily based on website supplies www.cnbc.com

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