Walgreens to Add Bank Accounts in Venture With InComm

Walgreens is expanding its financial-services offerings with a new bank account and debit card.
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Walgreens Boots Alliance  (WBA) - Get Report will debut a bank account for customers that will offer rewards tied to the drugstore giant's loyalty program. 

The Deerfield, Ill., company unveiled an agreement with InComm Payments, the Atlanta global payment-technology company, to expand financial-services options for its customers. 

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Walgreens and InComm will launch bank accounts, to be established at MetaBank, the Sioux Falls, S.D., financial-services company focused on lower-income individuals. 

Alongside the accounts will be a Mastercard  (MA) - Get Report debit card that customers can use in store and online and enables them to earn cash rewards on purchases. 

Walgreens launched its myWalgreens customer-loyalty program in November. 

"This new product offering will establish Walgreens as a destination for financial services, building on Walgreens’ legacy as a one-stop shop for pharmacy and convenience," InComm President Stefan Happ said. 

Additionally, Walgreens and InComm plan to relaunch the Walgreens-branded gift- card program. 

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Last week, Walgreens was added to Deutsche Bank's Catalyst Call Buy Idea list while the firm boosted its price target to $55 a share from $49. 

Walgreens is scheduled to report its quarterly results before the opening bell on Wednesday. 

The company is expected to report net income of $948.4 million, or $1.13 a share, on sales of $36.5 billion, based on a FactSet survey of 20 analysts.

For the year-earlier quarter the company posted earnings of $844 million, or $1.52 a share, on sales of $35.8 billion. 

The stock has risen 14% since the company last reported earnings on Jan. 7.