Canadian Tire Money goes digital

Canadian Tire will be digitizing its loyalty cash, Canaidan Tire Money (CTM), starting this fall.

Canadian Tire is one of Canada's largest and longest serving retailers, focusing on hardware, automotive, home and recreational products. Its reward money was introduced in 1958 and has become a staple in many Canadian households. It can be redeemed for goods purchased in store but has even been accepted by other private businesses in the place of cash, knowing they can redeem it for fair value.

It had the look and feel of money and even included some security features. It was denominated in 5¢, 10¢, 25¢, 50¢, $1 and $2 paper notes. Coins were later introduced as well. Early on, shoppers got as much as 5% of their back as Canadian Tire Money. The reward was gradually reduced over the years, today being 0.5%, average for a typical rewards program.

Before the digital age, loyalty programs weren't as easily created, so CTM in its physical form was one of the few such large-scale programs around.

Transactions with the currency can now be registered with the Canadian Tire app, money card or MasterCard.

The retailer will likely experience some cost savings and more traction in the program now that users will not have to deal with the clunky cash stuffed aside in wallets, drawers and glove compartments.