As part of its ongoing research, Mercator Advisory regularly profiles companies delivering innovations to the payments business. In the latest installment, we profile PayPerks, a company that helps prepaid programs improve cardholder engagement and retention through the use of incentives for education and specific cardholder behaviors. Below we talk with Arlyn Davich, the founder and CEO of PayPerks.
Q: What does PayPerks do for prepaid card programs?
A: PayPerks provides a program of what we call ‘behaviorally designed incentives’ to aid card programs with cardholder engagement. The PayPerks platform works with large amounts of data to personalize each cardholder’s experience and nudge the most relevant behavior changes that drive profitability.
Q: How does it work?
A: Cardholders are encouraged to link their cards to their PayPerks account to unlock points earning opportunities for completing education modules or certain tasks like signing up for direct deposit. Those points are converted into opportunities for the cardholder to win cash prizes that are deposited onto the card. The goal is for PayPerks to educate cardholders on how to use their cards in the most effective way and help program managers develop a more profitable cardholder base.
Q: Who does PayPerks work with?
A: PayPerks work with a variety of prepaid programs, including payroll programs, general purpose reloadable programs, and government programs, including the Treasury’s Direct Express program for Social Security benefit disbursement.
Q: What is the future for the company?
A: PayPerks plans to continue its growth with prepaid card programs. It is also looking for opportunities to offer PayPerks to debit and credit card issuers. PayPerks sweeps-based approach provides high levels of cardholder engagement but is much more cost effective to offer that traditional points-based rewards programs.
To read more about PayPerks’ business, please visit Mercator Advisory Group’s Web site where the complete profile is available for purchase.