Loyalty Retention Factor
Most retail (general spend) re-loadable prepaid card programs (where the responsibility lies solely with the card holder to load their prepaid card with their own funds) have extremely slow take up or ultimately fail. The presumption that cards will be used because the card holder wouldn’t normally have an existing credit card and so is incentivised to use the card, is fast becoming a weak unsustainable business model. The greater the number of general spend programs launched within a specific territory, the weaker the effectiveness of all individual general spend programs are within that territory, as customers without any loyalty move to wherever the most economical card program exists. As such, general spend schemes suffer high failure rates.
To help organisations minimise churn and increase customer retention, CCS Prepay is able to integrate a loyalty cashback module which allows card program owners to position a loyalty scheme where their card holders gain access to discounts at thousands of online merchants. Online purchases lead to the accruing of loyalty points for card holders, which can be redeemed for cash payout through the card program onto their prepaid card. This encourages additional card transaction volume activity for the program owner and thus increased revenue. The rewards program can be implemented for schemes operating in United States, United Kingdom, Mainland Europe, Australia and is fast becoming a mandatory requirement plug in for prepaid card schemes as the concept to encourage card usage. An example of some of the brand names under the UK scheme can be seen below.