Credit union credit card rewards can and should be a big draw. That goes for debit card rewards, too. The best way to get someone to use your card is to incentivize that use.
But how much does it cost to run rewards programs? And how many of those incentives do members actually use?
That’s where this week’s fintech comes in. Meet Revenew, an incentive platform designed to drive card usage and loyalty.
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Why Credit Union Credit Card Rewards?
Okay, this one is pretty obvious:
People like getting deals, rewards, and incentives. They’ll go out of their way for them.
That’s the whole idea behind credit card rewards programs, and it totally works.
My favorite card is a travel rewards card. It’s top of wallet for me. It handles tens of thousands in purchases per year. For me, that’s a nice vacation.
For the issuer, that’s a decent chunk of interchange!
I will stop using my preferred card only when I’m given better incentives.
I’m certainly not alone on this.
Why Not, Though?
There’s always a catch. As great as rewards are, they have to get funded by someone. Generally, credit unions pay to get rewards in their members’ hands.
But not with Revenew.
Revenew is merchant-funded. They’ve found that businesses are happy to take a small loss on the transaction to bring in new customers.
So, the merchants subsidize the rewards in exchange for new customers and better loyalty. The issuer reaps the interchange. The member saves.
Win, win, win.
Just a Little More About Revenew
Revenew doesn’t offer the typical points or miles for its credit card rewards. Instead, it’s an automatic cash back offer of around 5%. No special sign up, no hoops to jump through to redeem.
Not only do members get cash back, but the credit union gets a commission on every qualifying transaction. Yes, that’s in addition to interchange. So, if you like doubling up on non-interest income, Revenew may be worth a second look!
Oh yeah, and then there’s the really interesting part:
Revenew is powered by machine learning. Its AI algorithms analyze individual member spending to introduce new opportunities based on their habits and preferences.
This opens a wild amount of opportunities that we honestly don’t have the space to get into here. But rest assured—their AI platform will continue to evolve and bring more value to your members and institution.
Next Steps for Credit Unions
Credit union profitability is falling. To combat that trend, a few things could help:
- Credit union credit card rewards;
- Increased interchange revenue and share of wallet; and
- Improved member experience and offers.
Any credit card rewards program that doesn’t cost your institution or your members is worth a second look. Especially when, on the Chris Otey scale of fintechs, Revenew wants to “eat lunch with you.”
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