Dive Brief:

• In an effort to reward healthy choices, Walgreens debuted its myWalgreens Credit Card program Monday. The program features two credit cards — the myWalgreens Mastercard and the myWalgreens credit card — both issued by Synchrony Bank. 

• As part of the program, myWalgreens Mastercard cardholders can earn 3% Walgreens Cash rewards for eligible grocery and health-related spending outside of Walgreens (including healthcare provider visits), and 1% Walgreens Cash rewards on other eligible purchases. MyWalgreens credit card cardholders can get 10% Walgreens Cash rewards on eligible Walgreens-branded products and 5% Walgreens Cash rewards on all other eligible brands and pharmacy purchases.

• The credit card program will offer rewards at over 9,000 Walgreens locations, Walgreens.com, Duane Reade stores and through the retailer's app. For the Mastercard offering, rewards can be earned wherever Mastercard is accepted.

Dive Insight:

Walgreens' credit card launch is part of the pharmacy retailer's efforts to modernize its financial services and shopping incentives. In April, the company announced its plans to launch digital bank accounts that are available online and via 9,000 retail stores as part of its "alternative profit strategy." Last November, Walgreens revamped its mobile app to provide a pharmacy chat tool, flu alerts, and the ability to book medical care and vaccination appointments. 

The credit card program now integrates with the Walgreens app, which houses shoppers' digital receipts, their digital wallets and lets them donate rewards to nonprofits, the company noted in its announcement. Cardholders can use their digital cards in store, online or via the mobile app after they're approved and use the Walgreens Cash rewards they've earned online and in store, the company said. 

"Today's launch of the myWalgreens Credit Card is just the beginning in the evolution and expansion of our financial services offerings," Maria Smith, vice president of payments and financial services at Walgreens, said in a statement. "Most credit cards reward customers for what they buy, but not how they live. The myWalgreens Credit Card aims to change that through building upon the strength of our myWalgreens loyalty platform and app experience."

In addition to enhancing its digital and financial services, Walgreens has spent the past few years updating its brick-and-mortar locations. In 2018, the retailer announced plans to improve its beauty section and healthcare services as part of a new store concept. Last year, the company said it aims to open 700 primary care clinics in collaboration with healthcare provider VillageMD over the next five years. 

In addition to Walgreens, Synchrony Bank has amassed a long list of retail partners over the past few years, including Sam's Club, Amazon, B&H, HSN and J.C. Penney. The Walgreens deal deepens Synchrony's health and wellness foothold, Alberto Casellas, CEO and executive vice president of Synchrony Health and Wellness, said in a statement.

"Now more than ever, consumers are focused on living well and this card offers a dynamic, new customer experience designed to meet their unique needs — a personalized experience that makes saving, shopping and focusing on wellness easier and more rewarding," Casellas said.