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Businesses need to do more than offer great products and services to be successful. Smart business owners are always looking for new ways to improve their core offerings, increase brand recognition, and create new and sustainable opportunities for boosting revenue. That’s why businesses have been tapping into the power of the credit card for decades.
For as long as they’ve been around, credit cards have consistently helped massive corporations—from airline companies to international retailers—reach new customers and enhance the experience of existing customers. However, thanks to the dynamic and constantly evolving fintech space, the benefits of custom credit cards have become increasingly available to businesses of all sizes and across industries.
Here at Deserve, optimized and future-focused credit programs are our bread and butter. While we understand that launching a credit card is something that many businesses probably haven’t even considered, here’s why you should.
While many companies establish brand recognition with billboards, digital ads, and commercials, credit cards create more daily interactions with consumers: every time they use their card, they are looking directly at your logo. And, with a custom credit card, brands can communicate who they are and what they stand for through designing and customizing the entire credit card user experience.
For example, if you want to show that your company is future-focused and moving ahead of the curve, consider adopting a digital-first card (DFC). More consumers than ever are ditching their physical credit cards in favor of digital wallets on their smart devices, which means that businesses will increasingly need to prioritize DFC to stay competitive in an increasingly competitive space. With a DFC, a consumer can apply for a credit card through an app, and upon acceptance of their credit application, immediately add the card to their mobile wallet and start spending. That’s what we call a win-win.
If you want to show your company is reliable and secure, you can also create a seamless and highly functional user experience, from the credit card application all the way to card management via mobile apps. Too many credit card providers offer a clunky and old-fashioned user experience, so set yourself above the competition by investing in state-of-the-art technology.
Loyalty programs, which offer perks to consumers for continued brand engagement, have been proven to be an effective method for attracting new business and retaining the loyalty of an existing customer base. According to stats by Accenture as reported by Forbes in 2020, more than 90% of companies now offer some form of a loyalty program, and there are at least 3.3 billion active loyalty memberships in the U.S. alone.
By introducing credit cards into the mix, businesses can greatly diversify both how their loyalty programs operate and what they give to consumers. Unlike traditional loyalty cards that offer rewards for shopping the brand’s exclusive products and services, building a custom credit card allows businesses to recognize their consumers’ interests and offer customized rewards programs based on those interests. For example, BlockFi—a financial services app and big-hitter in the crypto-trading business—launched the BlockFi Visa Signature Rewards Credit Card (powered by Deserve) this past June, offering 1.5% Bitcoin back on every purchase to cardholders. By all metrics, it has been a smashing success because consumers were happy to finally have a way to passively earn cryptocurrency.
When used in this way, loyalty programs have the potential to increase recognition while also incentivizing more purchases and recurring engagement with the brand.
Increased brand recognition and consumer engagement are both great, but so is profit. It’s no secret that building a credit card for your consumer can create new sources of revenue. The same can be true for businesses like yours.
Most custom credit cards are conceived and negotiated around some form of revenue sharing, whether it’s traditional membership fees and interest charges, or merchant fees on brand-specific transactions. If that all weren’t enough, custom credit cards also increase the lifetime value of consumers because businesses have more opportunities to cross-sell their consumers and enrich the value of their brand. With the right strategic relationship, businesses can enjoy a considerable boost in alternative revenue, as well as increasing the profits of their core products and services.
Overall, launching a custom credit card can be an excellent strategy for optimizing marketing efforts, increasing sales and engagement, and creating previously unrealized streams of revenue. With a little focus and creativity, almost any organization can have success in bringing a custom card to market.
That said, not all credit card providers are created equal. At Deserve, we have built a name for ourselves through our unparalleled innovation, passion, and speed. Check out our website today and learn how you can build a custom credit card in 90 days with Deserve!