There’s a massive consumer card opportunity when it comes to cashback and loyalty schemes. While corporate card programs have fallen short in recent years, cashback and loyalty programs that target individuals using their debit cards are thriving. But why is this?
If we rewind to just a few years ago, loyalty schemes looked vastly different. From tedious sign-up processes at check out to, yet another cart taking up space in your wallet/purse. In many ways, loyalty schemes were more of a nuisance to consumers.
The Evolution of Loyalty Schemes
Fast forward to 2022, and things have evolved tenfold. The evolution of loyalty schemes has been led by fintech firms. As the world moves into the digital age, consumer loyalty schemes have done the same. In many cases, we no longer need to add another physical card to our collection. Smartphone apps make it incredibly easy to sign up and redeem rewards.
Introducing a new era of cashback and loyalty programs. The data collection and card issuance processes can be handled by third parties, so businesses don’t have to bother about those tasks. Bank-driven consumer loyalty schemes are seamless, the consumer simply needs to make a purchase using their bank issued debit or credit card, the rest happens behind the scenes. Whenever the debit or credit card is used, the reward is automatically credited to the consumer’s card. Why would a consumer turn down a loyalty scheme when they need not do anything, besides tapping their card to make a purchase?
By offering rewards and consumer loyalty programmes through debit and credit cards, banks can also tap into a new opportunity, and that is businesses. Business customers tend to make regular purchases with specific suppliers or merchants. For example, airlines, hotels, restaurants, office equipment, laptops, etc. It, therefore, makes sense to offer loyalty programmes for business accounts. With the right merchant partnerships, banks can target the corporate sector and take advantage of existing value.
There’s a great opportunity for banks to really step up their loyalty programmes, especially with corporate clients. Since, the process of signing up and earning rewards is so easy, why would any business or individual refuse to participate in the loyalty scheme? Free rewards for simply swiping your card sounds like a dream.
Traderoot’s Card Management System (CMS)
Traderoot Europe’s Card Management System (CMS) is capable of supporting the full range of card products: credit cards, debit cards and prepaid cards, corporate or personal cards, travel or gift cards, loyalty and reward cards. It can also support and manage virtual cards, e-wallets or any other type of payment token you might wish to provide to your customers.
The system fully supports emerging payment technologies, including mobile, NFC and contactless cards. It provides issuing strategies for late or early binding of all card products, regardless of their type.
With an intuitive user interface for managing different card profiles during the card lifecycle, as well as easy-to-use card issuing software, the CMS gives you all the tools you need to deliver and manage any card product that you and your customers desire