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Jan 29, 2024

Branded payment programs bolster customer engagement

A study by Runa, a global digital value infrastructure for B2C payouts, says merchants need to invest in their branded payment programs and make gift cards central to them in order to drive engagement and POS access.

Gift cards are increasingly central to any business's branded payments strategy. The impact of the rewards and payment programs of leading brands demonstrates how branded payments bolster customer engagement and revenue growth. Consumers often wish to transition to merchant-branded options, primarily motivated by factors like discounts (81 percent), increased rewards (78 percent), and exclusive member benefits (71 percent).

Furthermore, business to consumer digital gift card distribution is growing, with 41 percent of consumers reporting that the primary way that they receive gift cards is through various coalition loyalty and rewards programs. Consumers overwhelmingly favour flexible spending options, which signifies a growing demand for variety and the ability to tailor payout experiences to individuals' choices. Merchants that can capitalize on this stand to boost customer adoption.

A growing proportion of consumers say they value receiving a digital balance usable at multiple merchants, and this preference is driven by immediate access to funds (60 percent), the convenience of bypassing traditional banking processes (56 percent), and the flexibility to choose from different merchants (52 percent). Notably, convenience (57 percent) and speed (51 percent) emerge as the top priorities for consumers when selecting their preferred method to receive funds.

The study underscores the significance of merchant-branded payment programs in fostering customer engagement, acquisition, and loyalty. Compelling incentives, such as enhanced rewards (60 percent) and discounts at the point of purchase (56 percent), emerge as pivotal factors for enticing consumers to explore these programs.

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