For the second time in the past decade, the venerable Canadian multinational coffee chain Tim Hortons is getting out of the credit card business.
The cards will still work after October 1, but they will be managed solely by the issuer, Canadian fintech Neo Financial. Once that change takes effect, card transactions will no longer earn Tims Rewards Points, effectively severing the link between the card and the coffee chain’s loyalty ecosystem.
The company launched its credit card program in June 2023, positioning it as a way to offer Canadians more inclusive, easy-to-access financial tools designed to fit everyday spending habits. Tim Hortons had previously entered the space in 2014 through a partnership with CIBC on the Double Double Visa Card, which was eventually discontinued in 2019.
“Tim Hortons serves a reported 5 million cups of coffee a day in Canada, but co-brands and coffee don’t usually make good partnerships,” said Brian Riley, Director of Credit at Javelin Strategy & research. “For me, I’d rather have a cup of Tim Horton’s coffee than a co-branded credit card with the java company.”
Not the Right Blend
Tim Hortons isn’t the first coffee chain to struggle to find a foothold in the credit card space. While Starbucks has found success with its reloadable prepaid cards, it shuttered the Starbucks Rewards Visa Card, issued through Chase, in July 2023 after five years of trying to build a market. That was also its second attempt at a credit card.
“Dating back to 2003, they had the Duetto Visa with Bank One, now Chase,” said Riley. “It was a flop and got Starbucks to overhaul their reward program. They tried one more time in 2018, with Chase, but it had no juice and was shuttered.”
For its part, Dunkin’ does not offer a credit card of its own, but piggybacks on the American Express Gold Card for rewards. Cardmembers can receive Dunkin’ credits when paying with their Amex Gold at U.S. locations, but the cards are not co-branded.
Rewards Are the Key
All these coffee chains have learned that rewards programs tends to drive customer loyalty more effectively than credit cards. In fact, Starbucks Rewards customers spent more than $13 billion through the program last year.
Tims Rewards has gradually evolved from visit-based points to dollar-based rewards, better aligning with how customers actually spend.
Tims also brought back its Roll Up The Rim to Win contest in physical form this year, resotring the classic in-cup game where customers peel back the rim to reveal prizes. The promotion, which has been running for around 40 years, had moved online during the pandemic.
