“Cardlytics : , the pioneer of transaction marketing : , and Austin, Tex.-based NetSpend Holdings, Inc. : , a leading provider of general-purpose reloadable prepaid debit cards and related financial services to the 60 million underbanked consumers in the US, have partnered to provide consumers with highly targeted rewards based on their prepaid debit transactions.”
To be effective, a merchant funded discount program must deliver real benefits to the merchant. If it does not, the discount offer will be too low to be interesting to the cardholder and insufficient to provide revenue back to the program manager. Cardlytics indicates that this dynamic is addressed in its platform as follows:
“Cardlytics’ transaction marketing platform is unique in that it provides retailers with the ability to present relevant offers to targeted consumers. Retailers can quickly and easily adjust the placement of offers to maximize their results – a level of efficiency not currently available with any other marketing vehicle.”
Netspend targets consumers who are looking for alternatives to traditional debt and credit cards, so it will be interesting to see how this target market appeals to merchants and the level of discount those merchants are prepared to offer.
