Tim Hortons, CIBC Partner Up to Launch New Double Double Visa Credit CardPosted July 8, 2014 in Business, Reviews
Tim Hortons is hoping Canadian coffee drinkers will warm up to its newest credit card offering. Canada’s favourite coffee chain has partnered with CIBC to launch the “CIBC Tim Hortons Double Double Visa Card.” This credit card is as Canadian as it gets – “double double” is slang when ordering a coffee, indicating two creams and two sugars.
This is no ordinary credit card – the rewards credit card comes with physical buttons cardholders can press when making purchases. The credit card launch comes amid heavy competition from rivals McDonald’s and Starbucks, who have been chipping away at Tim Hortons market share in recent years.
The Double, Double Visa Card
The Double Double card is a no annual fee CIBC Visa credit card and a classic Tim Card rolled into one. It’s Canada’s first credit card to feature two-button technology. Pressing the first button will let cardholders access their Visa account to make everyday purchases. The rewards credit card is pretty straightforward – one per cent of each purchase is instantly converted into Tim Cash rewards.
Pressing the card’s second button will let cardholders redeem their hard-earned reward points for their favourite Tim Hortons goodies. Cardholders will enjoy a colourful light display each time a button is pressed. The new card comes with all the great features you’d expect from a Visa card, including the convenience of Visa payWave and the security of chip-and-pin technology.
“This new CIBC Tim Hortons Double Double Visa Card with its dual light technology is the first of its kind in Canada,” says David Clanachan, Chief Operating Officer, Tim Hortons Inc. “At Tim Hortons we are focused on bringing forward innovations and technology with a purpose that will help make our guests lives easier – much the same as we do with food and coffee innovation. And this is technology that people are going to want to have in their wallets.”
Tim Hortons Facing Tougher Competition
Tim Hortons stranglehold on the coffee market has loosened amid stiff competition from McDonald’s and Starbucks. Rival coffee chains have stepped up their game in an effort to steal market share from Canada’s coffee kingpin.
Serving two billion cups of coffee in Canada each year, Tim Hortons is the undisputed coffee leader. Despite its success, it has seen it fair share of struggles. It’s had great difficulty breaking into the lucrative U.S. market. With a Tim Hortons on nearly every corner, its growth opportunities are limited north of the border.
McDonald’s and Starbucks have customer loyalty programs of their own. Tim Hortons rewards credit card goes toe-to-toe with Starbucks rewards card and McDonald’s McCafé Rewards card. The Double Double card is only the beginning of Tim Hortons loyalty rewards program – it plans to roll out further offerings in the coming months.
How CIBC Looks to Benefit
The partnership is a big win for CIBC, who is still hurting from the loss of its longstanding deal with Aeroplan. Last year CIBC watched in dismay as Aeroplan jumped ship to TD Bank, bringing more than 500,000 cardholders with them.
CIBC sees the partnership as an excellent opportunity to cross-sell its banking offerings. Canada’s fifth-largest bank is hoping this will be the beginning of a longstanding relationship with cardholders. After you’ve signed up for the new Double Double credit card, hopefully you’ll open a chequing account, take out a mortgage, and manage your RRSP (registered retirement savings plan) with them.
“We’re excited to bring another banking innovation to Canadians,” says David Williamson, Senior Executive Vice-President and Group Head, Retail and Business Banking, CIBC. “Our new Double Double card gives clients more choice in the type of rewards they earn, and our partnership with Tim Hortons gives us an opportunity to attract new clients to CIBC who already enjoy Canada’s favourite coffee as part of their daily routine.”
CIBC is hoping to duplicate the success of the SCENE Visa Card. ScotiaBank has seen great success, with 40 per cent of its cardholders opening banking accounts. Banks also profit from a steady stream of revenue from the interchange fees received from purchases, not to mention the priceless information on purchasing habits of cardholders.
The Bottom Line
For Tim Hortons customers, the partnership with CIBC is a match made in heaven. Start your day off right with a cup of Tim Hortons coffee and earn rewards points that can be redeemed for your favourite sweets – it doesn’t get any better than that! For more details on the CIBC Tim Hortons Double Double Visa Card and to sign up for one, visit http://www.DoubleDoubleCard.com.