Sep 10, 2007

Making credit and debit cards more valuable in the Philippines


Robinsons supermarkets in the Philippines are offering customers a cash rebate that looks a lot like promotions you might get anywhere else in the world, until you look closer and see an interesting difference in how the rebate is actually delivered.

“Get 100 pesos back for every 5,000 pesos accumulated purchase at any Robinsons store.”

The promotion is clean and simple. There is no need to collect receipts across multiple transactions and submit them to a cashier, which is the way customers usually have to claim traditional rebate discounts. Here the credit card chip keeps track of the customer’s spending then automatically applies a receipt discount when the customer has reached a 5,000 pesos threshold.

The newspaper ad in this picture highlights something else. When you simplify the promotions process for the retailer and make credit and debit cards more attractive and valuable, the retailer actively encourages customers to use their card to pay. In this example the promotion is only for BPI Credit Cards. In other examples, the retailer will be able to offer promotions to a larger group of customers, say all MasterCard Maestro cardholders (see “Making MasterCard’s Maestro the preferred debit brand in post-SEPA Europe”).

We want to help payment brands offer valuable features to merchants, so merchants encourage customers to use that brand over others, interchange fees are easier to justify, and the brand is accepted by more banks. Our customers are now beginning to provide data on how Welcome’s approach can help payment brands dramatically increase market share.

1 comment:

Cosmopolitan Critic said...

They have done this in New York at Duane Reade (drug store). Currently if you spend $100 you get $5 dollars back on a receipt for purchase at Duane Reade. Chase had a deal with them where if you used your Chase Debit or Credit card you would get double points or something. Promotions like this are great, especially if you are going to shop there anyway. Drives up loyalty and spend on a particular card.