PaymentsJournal
SUBSCRIBE
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
No Result
View All Result

NetBanker Blog: Groupon 2.0 and Merchant Funded Rewards

Mercator Advisory Group by Mercator Advisory Group
March 28, 2011
in Analysts Coverage
0
Bank fintech

Bank building interior with office, front desk, waiting room, entrance and self service atm, banking and finance concept

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Blogger Jim Bruene, over at NetBanker, has some interesting ruminations today on the future of rewards in banks’ card portfolios. Groupon, he says, should be an instructive and inspiring business model for delivery of cardholder rewards in debit and credit card programs.

It’s Groupon 2.0 that I think is even more interesting for financial institutions. The new model, coming in a few weeks, is all about mobile deals. The company is said to be planning on adding two buttons to your smartphone:

I’m hungry…which will alert you to nearby Groupons you can use for food deals.

I’m bored…which will alert you to just about anything else Groupon sells.

It’s brilliant. And so simple. Again, everyone will wish they’d built it.
___________________________________________
Banking Opportunities
________________________________________________
So how could you do the same thing in personal finance? What would those buttons be?

• I’m broke….leads to ATM finder, cash-back location, credit card site, loan app, friends & family loans, P2P lender, etc.
• I’ve just been paid…leads to ATM finder, branch locations,
deposit accounts, billpay, investments, automated savings plans, etc.
• I’m out of town…leads to ATM finder, FX locations, travel services,
resource locator, notifies card issuers, security preferences, etc.

But those are all pretty much standard functions of online/mobile banking today. The bigger opportunity may be to beat Groupon at the local level, with merchant-funded rewards tied to debit/credit cards (see note 1). Banks could potentially use the same “hungry/bored buttons” and direct customers to cash-back deals at restaurants and other merchants making offers to your cardholders.

Bottom line: Location-based rewards is another example of why mobile banking will be more important than online banking. To put it simply:

Banks enable commerce.
Mobile enables location-based commerce.
So financial institutions are right in the middle of a multi-billion dollar shift in retail spending. Enjoy all the opportunities!

The Original Blog Post: http://www.netbanker.com/2011/03/can_banks_and_credit_card_issuers_outflank_groupon_with_merchant-funded_rewards.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+netbanker+%28NetBanker%29&utm_content=Google+Reader

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Analyst Coverage, Payments Data, and News Delivered Daily

    Sign up for the PaymentsJournal Newsletter to get exclusive insight and data from Mercator Advisory Group analysts and industry professionals.

    Must Reads

    online fraud

    Understanding the Cost of Online Fraud and How to Prevent It

    March 27, 2023
    live shopping, ebay

    Q&A: eBay Exec on Live Shopping and the Future of Payments

    March 24, 2023
    AI and Biometrics in Regulatory Compliance in Finance

    The Importance of AI and Biometrics in Regulatory Compliance in Finance

    March 23, 2023
    Everyone Benefits from the Real-Time Payment Networks  

    Everyone Benefits from the Real-Time Payment Networks  

    March 22, 2023
    commercial payments

    Optimizing Commercial Payments in the Digital Age

    March 21, 2023
    cross-border payments

    Cross-Border Payments: Fighting
    E-Commerce Fraud Using Data

    March 20, 2023
    fraud, ChatGPT-4

    How to Fight Fraud While Still Enabling a Great Online Customer Experience

    March 17, 2023
    RTP

    Financial Institutions Without an RTP Strategy Risk Being Left Behind

    March 16, 2023

    Linkedin-in Twitter

    Advertise With Us | About Us | Terms of Use | Privacy Policy | Subscribe
    ©2023 PaymentsJournal.com

    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    Menu
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    • Industry Opinions
    • Recent News
    • Resources
    Menu
    • Industry Opinions
    • Recent News
    • Resources
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Industry Opinions
    • Faster Payments
    • News
    • Jobs
    • Events
    No Result
    View All Result

      Register to download the PayPal report