17th August, 2020
Aspects of personal finance, including spending, saving and investing, are under scrutiny. A detailed understanding of it, including the logic behind certain decision-making, can be the best starting point for encouraging spending whenever one is ready.
The specialists in "Buy Now, Pay Later" payments category are going beyond their financial wellness stance and have started their own loyalty programs.
After Klarna’s move to work on a rewards program, Afterpay announced its new loyalty program last month.
Drifting away from excessing spending
These companies assert that till date loyalty programs have revolved around excessive spending.
They point out that consumers are now being rewarded for paying in a way they prefer, with their debit cards. Klarna mentioned that shoppers would earn a loyalty currency once their payments are completed and paid on time.
Travel merchants must assess how consumers are looking at saving money and spending it. Affirm has already “seen the momentum around savings firsthand” and also mentioned savings may yield future travel spending.
So is it time for travel e-commerce players to be a part of apps that reward consumers for saving, spending or even investing in a new way?
By Ritesh Gupta
Co-brand & Travel Reward Cards Virtual 2020