‘Programs without gotchas’: Startups get more creative with rewards programs for debit card holders
- Rewards programs were generally used for credit card holders.
- As more fintechs launch debit offerings, there are introducing new incentives, as well.
A growing number of fintechs are now touting rewards, including instant cashback and deep discounts, for spending via debit cards in hopes of recruiting new customers and keeping current ones. While many of the rewards programs are basic cash-back deals, some are more innovative, offering things like shares of stock and deep discounts at certain retailers. With few traditional checking accounts offering cash back on debit card spending since the 2010 Dodd-Frank reforms limited interchange fees, these rewards programs are another opportunity for startups to differentiate themselves from the standard financial services.
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