The Canadian Imperial Bank of Commerce (CIBC) announced Wednesday that it is teaming up with food-and-coffee chain Tim Hortons Inc. to release a new Visa card called the "Double Double Visa Card."
"Double double" is a term used in Canada that refers to a coffee served with two sugars and two creams, and is usually associated with Tim Hortons, according to the Wall Street Journal. CIBC, which is based in Toronto, is the fifth-biggest bank by assets in Canada.
The bank is looking to use the new Visa card to increase the amount of customers using the service. Credit cards generate larger profit margins than other consumer load products, making them a very competitive market segment in Canada.
Tim Hortons is also using its partnership with CIBC to offer "Tim Cash" rewards to customers who buy coffee, doughnuts, and other items with the Visa card, Globalnews.ca reported. The rewards let cardholders earn one percent in Tim Cash on every purchase they make with the card. Rewards points will be stored on the Visa, which customers can also use to redeem items at the restaurant.
The Double Double Visa Card also includes two buttons that are built into the plastic, CBC.ca reported. One button lets cardholders access their Visa account to make payments, while the other allows users to redeem loyalty points for Tim Hortons items. A colored light is included for both buttons that illuminates when customers choose one.
The button feature has been praised by both CIBC and Tim Hortons executives as an innovative addition to the Visa card, the Wall Street Journal reported.
"We're excited to bring another banking innovation to Canadians," said David Williamson, senior executive vice-president and head of retail and business banking at 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 favorite coffee as part of their daily routine."
The credit card serves as the first step in the development of a new loyalty program, CBC.ca reported. Tim Hortons has yet to announce when the complete rewards program will arrive.
