How Fintech Is Simplifying Rewards Redemption
Fintech has disrupted many areas of traditional finance. While the majority of fintech’s focus has been centred around loans and banking business models, rewards redemption is finding itself in the spotlight. There’s no doubt that loyalty programs and reward offers are key drivers of retail business growth
Fintech has disrupted many areas of traditional finance. While the majority of fintech’s focus has been centred around loans and banking business models, rewards redemption is finding itself in the spotlight. There’s no doubt that loyalty programs and reward offers are key drivers of retail business growth.
A study conducted by market research firm Rare discovered that close to 80% of consumers surveyed felt rewards programs enhance their brand experience. However, redeeming these rewards is an obstacle. Fort-three percent of consumers surveyed by CodeBroker claim that physical cards are a huge obstacle to claiming rewards. A further 17% cite the need to link cards to accounts online as a disruptive experience.
Clearly, the rewards redemption industry needs fixing, and fintech has once again stepped up to the plate. Here’s how fintech firms are currently disrupting the industry.
One Card to Rule Them All
Loyalty programs are great for merchants, but the issue is that customers shop from multiple outlets. Carrying physical cards everywhere requires space, and physical wallets have only so much room to offer. The result is consumers arbitrarily choose loyalty programs to adhere to, and retailers miss out despite offering better services than their competitors.
Solutions such as CardBlanch’s card and application can integrate every physical card a consumer has into one single card and mobile app. Via the app, consumers can automatically pull all their credit, debit, and loyalty card information into a single place without going through complicated steps. The result is that consumers have an elegant electronic and physical solution that doesn’t require them to lug multiple cards around.
Automated Reward Calculation
One of the sticking points that consumers face when paying is figuring out which card will give the maximum benefits. For instance, if one card offers greater cashback while another offers miles, it can be tough to translate both offers into bottom-line dollar terms.
Fintech solutions can offer consumers a huge benefit in this regard since an algorithm can calculate and apply rewards much faster than a human being can. At checkout, all consumers will need to do is have their app determine which card would be the best choice for that purchase and automatically earn the highest rewards possible.
Consumers can even build rules around their spending and take credit limits and reward preferences into account when paying. By building discount profiles and spending patterns, consumers benefit by having up-to-date data at all times and can take advantage of all discounts available.
All-around Spending Insights
One of the problems with having multiple cards and loyalty program memberships is that tracking spending becomes tricky. Most consumers these days use budgeting apps that connect to bank cards. However, linking these cards to the app is tough.
Another issue is that some apps don’t work with certain card providers and this means consumers cannot access a full picture of their spending. Combining all cards onto a single platform makes it easy to run analytics on spending. All consumers would have to do is link a single card and view complete spending data.
Thanks to online integration, consumers can analyze their spending better and take note of their rewards redemption. Best of all, fintech rewards solutions can be added to Google, Apple, and other contactless wallets. This increases the simplicity with which payments can be executed by consumers.
Retailers benefit from such solutions as well since consumers can notice which merchants offer them the best deals. Thus, spending is spread fairly between merchant loyalty programs, with merit being the sole criterion.
Easier Reward Redemption, Better Spending
Solutions such as CardBlanch’s rewards card simplifies loyalty redemption for both merchants and consumers. Thanks to consumers spending money based on the discounts and rewards on offer, merchants can tailor their offers better and receive fair feedback on how they’re perceived.
In turn, consumers can always receive the best rewards and easily track spending. With all parties benefiting, there’s no doubt that the simplification of rewards redemption that fintech companies are bringing is a no-brainer.
