Tim Hortons will also offer a second version of its credit card aimed at students, newcomers and others with limited or no credit history.
This secured credit card will earn Tims Rewards Points and may help users build their credit, the company said.
The credit card management will be fully embedded into the existing rewards app, said Sturm, including applying for the card and viewing statements. However, customers can also load the card to a digital wallet like Apple Wallet, he said, and they can also receive a physical card.
Almost five million Canadians are using its app every month already, Tim Hortons said in the release, and the company believes its new card will be an attractive option for many of them.
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Brands have been increasingly offering not only rewards programs but also linked financial services and credit cards, but Sturm said he thinks the Tim Hortons rewards program stands out because of the accessibility of its rewards. Instead of saving up for what he calls more aspirational rewards, Tim Hortons customers can easily rack up enough points to get a more tangible, practical reward like free coffee or food, he said.
Tim Hortons wanted to offer an inclusive financial product for people with limited or no credit history, said Sturm.
"We want to support them just like we do in fuelling their day with coffee and beverages and food,'' he said. "We also want to fuel their growth to financial prosperity and give them options to help build their credit.''
The Tim Hortons rewards app was in the spotlight around a year ago after an investigation by federal and provincial privacy watchdogs found the app had violated the law by collecting large amounts of location information from customers. The app was found to continually track users regardless of whether they were using it, though this practice stopped in 2020. Tim Hortons agreed to implement recommendations that it delete remaining location data, establish a privacy management program for apps, and report on measures it took to comply with the recommendations.
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"Everything that we've done for Tims Financial has taken all that progress into account and frankly added additional security and safety measures,'' he said.