How can financial institutions deliver impactful rewards value without relying solely on swipe fees? This was a hot topic discussed by our team at Money20/20 Europe, given the low-interchange environment in the European market and the prevalence of debit payments with minimal margins to fund rewards. Three strategies are proving they can move the needle and are quickly gaining traction: 1. Merchant-funded offers that feed into a rewards currency. Data consistently shows that accruing the value of merchant offers into a rewards balance (whether that’s a cash balance or a points currency) delivers significantly greater engagement than straight payout as a discount or rebate. Because we’re all collectors at heart, and it’s gratifying to see a rewards balance grow. 2. Rewarding the entire customer relationship, rather than just card spend, by incentivizing profitable behaviors beyond payments. Whether it’s a savings account, FX transactions or investment trades, a whole-of-bank approach unlocks new margin pools and the opportunity to drive holistic customer lifetime value. 3. Personalized rewards that are not publicized but instead smartly delivered to targeted groups of customers. These can be funded from marketing budgets instead of product margins. Investing marketing dollars to boost the earning of an accruing rewards currency delivers significantly greater ROI than classical ad-hoc incentives such as one-time cash rebates or random gifts. Our mission at Ascenda: enabling brands to drive growth inclusive of these three avenues, with a world-class rewards technology and content ecosystem that makes it easy.
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Associate Manager Sr. Project Manager, Electrical Engineer Freemason .·.32° 🌿 , Gamer, Geek,
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📣 I am happy to share my new article "Paying in a blink of an eye: it hurts less, but you spend more" published in Journal of Economic Behavior & Organization. This is joint work with Marie-Claire Broekhoff. 📱 ⌚ 💳 💶 #contactlesspayments #cash #painofpaying
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Works at Bank of Maldives
1moGreat advice!