Tim Hortons to launch credit card
TORONTO - With the press of a button, Tim Hortons (TSX:THI) is hoping Canadians will warm to a new credit card partnership.
The coffee and doughnut chain has joined CIBC (TSX:CM) for the "Double Double Visa Card," which includes physical buttons built into the plastic.
Cardholders can press one of two options on the face of the card — a button that accesses their Visa account or another that lets users redeem loyalty points for products at the company's restaurants.
Each button has a coloured light that illuminates when the user activates one of the options on the card.
While credit cards with buttons aren't new, this is a first for Canada.
Previously, Citibank ran a pilot program in the U.S. which tested button technology with a select number of its clients. That card has since been discontinued.
The CIBC and Tim Hortons card allows users to earn points on purchases they charge to their no annual fee Visa card, collecting a cent on every dollar in Tims Cash rewards, the companies said.
CIBC launched the venture with Tim Hortons shortly after losing exclusivity for an Aeroplan-branded credit card. While CIBC still offers a card with Aeroplan, the loyalty points company has also launched a separate venture with TD Bank (TSX:TD).
The Tim Hortons-branded credit card is the first step in rolling out a loyalty program. The company has yet to announce when the full-fledged rewards program will debut.
The Tim Hortons credit card will be officially launched on Wednesday.