Cryptocurrencies and DeFi offer major unrealized gains within the digital transformation we’re going through. In this article, we aim to show why now is the time to ditch run-of-the-mill cash back or points systems in favor of crypto.
Fintech and neobanking have exploded in recent years. Global revenue grew by an estimated 88% over the period between 2020 and 2021 and shows no signs of abating. This upsurge has been accompanied by equally exponential growth in cash cards. Neobanks and fintech companies are issuing more cash cards than any other sector. Given how attractive cashback continues to be to consumers¹, more often than not, these cash cards include a rewards program.
With the market becoming increasingly awash with cashback cards, what can challenger banks and fintech companies do to ensure their products and services stay fresh?
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Graduating customers to [crypto] can drive meaningful uplift in revenue |
In their 2020 report, Block identified “new products and use cases” as being key to driving medium-term growth for banking apps. One such approach is integrating crypto into cashback rewards programs. At Cybrid, we see a once in a generation opportunity to embrace “crypto-led growth”.
A 2021 survey conducted by Bankrate revealed that over half of American consumers carry at least one rewards-based cash card. Despite an ever-more dizzying array of rewards and cash back programs available to consumers, nearly one-third of points remain unredeemed. If your cash card is among those gathering unused points, you are fronting the costs of a lost opportunity to engage your customers.
Of course, knowing who to reach out to for that engagement is a crucial first step. According to Business Insider, Millennials and Gen-Zs are the cohorts to watch.
Crypto Investor Demographic, 2022
As a generation, Millennials currently occupy the top spot as the main economic driving force in America. This tendency is set to consolidate itself further over the next few years. Not only is the lion’s share of purchasing power concentrated in the hands of today’s 24–41 year-olds; they are also the main driving force behind crypto adoption. When taken together with “trend-setting” Gen-Z, they make up a resounding 94% of crypto holders.
And appetite for crypto is growing. 88% of Millennials express interest in owning crypto as an investment. What could be more enticing for prospective or existing customers than “free” crypto back?
Broadening your cash back rewards into crypto is a sure-fire way to make your brand experience memorable and your card top of wallet. As well as driving net new customers, crypto is also uniquely placed to increase app engagement; both in the number of opens and time spent active.
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A fully engaged customer represents a 23% premium in terms of profitability and long-term revenue. - Forbes |
Between standard cashback, points or crypto rewards for your cash card offering, crypto is shaping up to be the only option that offers any meaningful upside for business growth. But integrating crypto doesn’t have to mean spending hundreds of thousands of dollars or precious months getting to grips with complex regulatory or technological landscape.
Cybrid has the seamless turnkey solution to make adding crypto to your cashback services simple and hassle-free. The digital transformation is well underway. It’s only a matter of time before card companies and the loyalty management market, as a whole, catch up to crypto. Don’t get left behind accumulating the unspent points and cashback of yesteryear.
