Page 26 - Pay Magazine s2014

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digital money
Powering
PrePaid LoyaLty
GPR providers can Long-term cardholder re- tention is among the biggest
managers must nd e ective ways to engage with cardholders and partner with brands and retailers to o er compelling rewards that drive spend. It’s a tall task, but some providers in the GPR space already are experimenting with loyalty and those programs can o er valuable lessons.
Last year, American Express launched a version of its Serve GPR card that o ered 1 percent cash back on all purchases—add- ing a cashback option to Serve’s existing merchant o ers rewards program. At the time, American Express said Serve was the rst
leverage merchant —and most elusive—goals
partnerships, smart engagement to
drive loyalty.
for GPR prepaid providers. And with Durbin Amendment restrictions on interchange fees putting the squeeze on even traditional debit card loyalty and rewards programs, it might seem like a long shot for loyalty to gain a foothold in the GPR sector, where margins and cardholder spend tend to be much lower. But it’s not impossible, some industry experts say.
To create a viable loyalty program, however, GPR issuers and program
By Adam Perrotta, Associate Editor