The merchant-paid rewards market is anticipated to grow at a faster pace owing to the increase in merchant-funded programs as replacements to traditional bank-funded loyalty programs. Financial institutions earlier relied on bank-funded loyalty for building a good customer base and encourage card payments. The advent of merchant-paid rewards prompted financial institutions to switch. Therefore, this switch is generating good results for the merchant-paid rewards market. Careful crafting of strategies can lead to a successful merchant-paid rewards program. Therefore, proper planning and great execution can benefit the merchant-paid rewards market greatly.
Advantages attached to merchant-paid rewards programs like value addition to the bank-customer relationship, revenue generation, and return on investment can aid in the growth of the merchant-paid rewards market to a great extent.
This upcoming report on the merchant-paid rewards market provides an in-depth analysis of the current market situation. The report covers components like competitive landscape, key players, regional analysis, and ongoing trends. The report also offers thorough research on how the COVID-19 pandemic will impact the merchant-paid rewards market. The segmental study enables an individual to thoroughly understand the merchant-paid rewards market.
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Merchant-Paid Rewards Market: Competitive Landscape and Notable Developments
Financial institutions like banks are coming up with innovative merchant-paid rewards programs that gel well with customer expectations. Digital wallets have also entered the fray with cutting-edge merchant-paid rewards programs. For encouraging online payments, digital wallets and financial institutions enter into frequent collaborations with merchants with a win-win situation that augurs well for the growth of the merchant-paid rewards market.
- Fold, a cryptocurrency startup, joined hands with VISA to enable transactions through Bitcoin accounts and get 1-2% back in Bitcoin for any purchase they make at merchants who have a visa-enabled transaction facility.
- Shopify announces a new merchant debit card for seamless transactions over their platform. They have also introduced ‘Buy Now, Pay Later’ option that could be beneficial for merchants selling items of bigger values.
- Samsung Pay has announced the launch of a physical debit card. It has launched a rewards program through collaborations and is the first mobile payment platform to do so. It also added support for Swipe’s cryptocurrency Visa cards. Such developments invite substantial growth for the merchant-paid rewards market.
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Merchant-Paid Rewards Market: Key Trends
The merchant-paid rewards market is witnessing an exponential rise in demand due to the growing instances of contactless payments owing to the current COVID-19 situation. The successful run of a merchant-paid rewards program can bring tremendous benefit to financial institutions. This also helps the financial institutions and digital wallet service providers to take into consideration the preferences of the consumer and design future merchant-paid rewards programs accordingly.
E-commerce is also adding great value to the merchant-paid rewards market. Many e-commerce establishments such as Amazon are introducing cashback options and transaction rewards by collaborating with various financial institutions to broaden their customer base. This can also bring exponential growth for the merchant-paid rewards market.
Merchant-Paid Rewards Market: Regional Analysis
The merchant-paid rewards market is geographically spread across North America, Asia Pacific, Europe, and the Rest of the world. North America may acquire a substantial share of the merchant-paid rewards market due to the growing preference of consumers toward cashless payments. Digital payments are taking the front seat and offer new and exciting opportunities for the creation of a merchant-paid rewards program that aligns with customer likes and interests.
Asia Pacific may also contribute greatly to the merchant-paid rewards market due to the encouragement by the governments in various countries such as India to go cashless. For instance, initiatives like the Digital India Programme by the Government of India lead to the promotion of cashless transactions and aids in the growth of the merchant-paid rewards market.
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