Banking on Rewards: How Open Banking is Benefiting from Digital Gift Cards 

Open banking is gaining momentum and now stands at the forefront of financial innovation, disrupting traditional banking models and enhancing the customer experience. But even with this momentum, a critical question remains: how can this burgeoning industry attract more customers and retain them effectively? Especially when doing so involves changing purchasing behavior and encouraging trust in a new payment method. 

The answer is with rewards and incentives - specifically, digital gift cards.

Banking on the Power of Digital Gift Cards

Digital gift cards are potent motivators, making them the ideal mechanism for encouraging and rewarding the adoption of Open Banking. Their immediate availability, extensive range, and user-friendly nature make them compelling for consumers who might otherwise hesitate to change their payment habits.

Here are some reasons why Open Banking businesses are now turning to digital gift cards to acquire and retain their customers.

1. Digital Gift Cards Are Instant

In an era where consumers expect everything at the click of a button, the digital nature of open banking and gift cards converges to offer unbeatable convenience. With quick digital issuance, e-gift cards meet the consumer's need for instant rewards, closing the loop between action and gratification.

2. Digital Gift Cards Are Cost-Effective

When combined with 'Pay by Bank' features that offer up to a 90% reduction in fees compared to traditional payment methods, the cost-efficiency of Open Banking becomes undeniable. Retailers benefit from lower transaction costs while customers enjoy extra value, creating a win-win situation that boosts loyalty and engagement. Plus, retailers that partner with Open Banking businesses also benefit from the additional basket spend associated with gift card use.

3. Gift Cards Are Known & Trusted

Trust is the bedrock of consumer behavior, and digital gift cards capitalize on customers' pre-existing trust in recognized brands, making the leap to try new technologies like open banking less intimidating.

4. Gift Cards Are Desirable

Ultimately, the power of digital gift cards lies in their desirability - consumers love them, especially when they’re personalized. Personalization not only delights customers but is a powerful motivator to try something new, like 'Pay by Bank,' significantly aiding customer acquisition and retention while forming positive associations with Open Banking as a new payment method.

See How Banked: and Tillo have Partnered to Make This Happen

To understand the potential, look no further than the partnership between Tillo and Banked:. Together, they've driven a jaw-dropping 130% increase in the adoption rates for Banked's 'Pay by Bank' feature, leveraging Tillo’s expansive catalog of over 2000 global brands as rewards and incentives at checkout.

"We are thrilled to partner with Tillo and bring their digital gift cards into our incentivization and growth strategy. This collaboration will play a significant role in driving awareness around Pay by Bank as a simple, secure, and fast way to make payments and also a way to offer meaningful benefits to consumers." Lisa Scott, CEO of Banked:

Thanks to Tillo, Banked’s merchants can now choose from a vast range of branded incentives and set campaign parameters. The Tillo platform takes care of all fulfillment aspects, and Banked also promotes merchant incentives through various marketing channels and provides comprehensive campaign analysis.

Utilizing Gift Card Platforms to Reach New Markets

Digital Gift Card Platforms like Tillo empower you to seize these new opportunities, diversifying your B2B strategy and helping you to get in front of profitable new audiences. 

Tillo’s plug-and-go gift card API offers brands like yours a unique opportunity to diversify your B2B strategy to include Open Banking and other rapidly evolving industries like Neobanking, Crypto, and Buy Now Pay Later

Will you take advantage of these opportunities? Get in touch with Tillo today.

About Tillo

Tillo is an embedded rewards and incentives platform that drives sustainable growth for businesses by connecting them to digital gift cards from 2000+ global brands, helping them to unlock innovative and profitable use cases. 

Our plug-and-go API provides a seamless connection to the brands people love, making it possible to manage and deliver rewards and incentives with one integration. Tillo is the fastest-growing global gift card network, operating in 37 markets and 16 currencies, and has processed more than $2 billion worth of gift cards to date.


Author: Martha Weaver, Head of Retail Partnerships at Tillo, RGCA Board Member, and Co-Chair of the RGCA Fraud Task Force.