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.