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Partnership-powered loyalty is a major trend in the space today, and the variety of such partnerships is constantly increasing. In the loyalty space, in this year alone, we’ve seen airlines collaborate with c-stores, a grocery retailer partner with a national charity, and an apparel retailer team up with a Swedish bank, among many others. These partnerships enhance brands’ value propositions and, in some cases, help to unify a brand’s experience across channels. Now, we’re seeing a loyalty-fueling collaboration between a big tech company and a national c-store brand. As of Friday, September 13, Walgreens customers receive 3 percent Daily Cash when they use Apple Card with Apple Pay on eligible purchases, including prescriptions, made in Walgreens and Duane Reade stores, and for purchases made on the Walgreens app and on the company’s website. Walgreens is the only retail pharmacy to offer 3 percent Daily Cash on Apple Card with Apple Pay purchases. Apple Card’s rewards program, Daily Cash, gives back a percentage of every purchase as cash on customers’ Apple Cash card each day. This means that when customers and patients use their Apple Card with Apple Pay, they’ll receive 3 percent cash back on all eligible health, beauty, personal care, household, and seasonal products they purchase at Walgreens or Duane Reade, including medicines and prescriptions. Joe Hartsig, Chief Merchandising Officer, Walgreens, says, “We know our customers love Apple Pay, and they’re looking for convenient ways to shop and pay for their purchases at Walgreens. We’re pleased to offer a higher level of Daily Cash on Apple Card for even better value on daily essentials, medicines and prescriptions.” In addition to offering 3 percent Daily Cash, Walgreens will also expand the number of stores carrying Apple accessories, including Lightning Cables, EarPods, and iPhone cases, to 2,600 stores. Customers will also receive 2 percent Daily Cash every time they use Apple Card with Apple Pay, and 3 percent Daily Cash on all purchases made directly with Apple, including at Apple Stores, apple.com, the App Store, the iTunes Store, and for Apple services. This collaboration is interesting in that it strengthens the reward offerings of both brands (often, these partnerships benefit both brands in some ways, but only one sees loyalty program enhancements). It will be interesting to see how consumers take this partnership, given that its value proposition is strong, even if digital wallets are new and unfamiliar to many.
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