Walgreens Expands Financial Services Business

Walgreens has linked up with InComm Payments in an expansion of its financial services business.

Walgreens has linked up with InComm Payments in an expansion of its financial services business. The partnership will offer a bank account to Walgreens customers established at Metabank with a Mastercard debit card that shoppers can use in-store or online to earn rewards in Walgreens’ customer loyalty program. The expansion also builds on the 12-year relationship between Walgreens and InComm.

Executive Summary

This news underscores how Walgreens aims to solidify customer loyalty through differentiated services. Walgreens is not the only retailer expanding into financial services. Walmart announced a partnership with fintech investment firm Ribbit Capital in January to create a fintech startup operation to deliver technology-driven financial services to its customers.

Walgreens previously announced in January it would launch prepaid debit cards and credit cards co-branded with Mastercard, and the agreement with InComm is part of the retailer’s broader initiative to launch new financial services and products.

“Walgreens is committed to helping customers with their health and well-being needs, and we’re pleased to expand our financial services offerings to further enrich the experiences and ways we meet customers’ financial needs,” said John Standley, president of Walgreens. “We look forward to exploring and introducing even more customer-focused health and well-being payment initiatives in the near future, while creating new revenue streams.”

The debit cards will enable customers to earn myWalgreens Cash rewards. Customers can find the product in-store or online, and the bank account is expected to be available in 9,000 Walgreens stores in the second half of 2021.

The agreement also relaunches the Walgreens-branded gift card program. Under the agreement, InComm will oversee Walgreens’ existing physical gift card program, launch its digital gift cards and enable digital purchase and redemption on the Walgreens website.