Merchant-paid Rewards
By: marketsandmarkets.com
Publishing Date:
March 2012
Report Code:
BFS 1009
Limitations on consumer credit and the decline of the ‘buy now, pay later’ trend have significantly increased consumer focus on savings and fiscal responsibility. An increasing number of consumers are now using debit cards instead of credit cards for everyday purchases. This change in trend is expected to considerable increase the use of merchant-paid reward programs. Merchant-paid reward programs offer customers the convenience of using debit cards instead of paper coupons. The use of this transaction-based debit program is expected to increase significantly mainly because of its cost-effectiveness to banks, its revenue-generating capacity, reduced dependence on interchange fees, and its potential impact on customer loyalty
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