Tim Horton's and CIBC Announce Agreement To Launch Loyalty VISA Credit Card Program
Tim Hortons (TSX: THI) and CIBC (TSX;CM) (NYSE:CM) announced an agreement to launch a co-branded credit card in Canada, which will offer instant Tim Hortons loyalty rewards to cardholders.
The new CIBC / Tim’s Visa credit card is scheduled to launch in May 2014, and will allow cardholders to accumulate Tim Cash rewards for all purchases made on the card. That Tim Cash can then be redeemed instantly using the same card at participating Tim Hortons locations to purchase coffee, baked goods, or any other Tim Hortons offerings.
“At Tim Hortons we’re fortunate to have very loyal guests, many of whom visit us every day. We feel that an innovative card such as this not only provides our guests added convenience, but is a great loyalty rewards solution offering instant redemption for their favourite Tim Hortons menu items,” explains David Clanachan, COO, Tim Hortons Inc. “This new card complements our strategy to actively pursue further technological innovation that help directly connect our guests with our brand.”
The new card will offer dual technology to combine two of the cards in your wallet into one: it will function both as a CIBC Visa credit card and a Tim Hortons loyalty card. Cardholders will earn 1% Tim Cash on all CIBC Visa purchases made on the card, which they can redeem at Tim Hortons locations using the same card.
With a 1% earn rate, the card offers good value compared to other no-fee mass market credit cards in Canada. The card also offers another advantage in that it allows cardholders to redeem at very low thresholds for items like coffee and sandwiches, make it very appealing for mid-to-low spenders, and those who just love their coffee free. Lastly, cardholders will be able to redeem instantly, in-store, using their credit card as their loyalty card as well, making it a very convenient medium to accumulate and redeem points.
As part of the May launch for the new co-branded card, CIBC and Tim Hortons will launch a national marketing campaign to promote the availability of the card to Canadians.
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