Pros and Cons of Most Common Cashback Payment Methods

Hi there,?

Jamie here.?

In our last Promo Pulse, we discussed the importance of picking the right payment method for your cashback promo. And while I hope you took away some food for thought, I’m sure there are still questions lingering.?

Like, is processing digital wallet payouts expensive? How long does it take for consumers in my target market to receive direct transfers? And what about Revolut??

So, let’s answer these questions and more.???

Direct Bank?Transfer?

Everyone uses bank transfers, right? Well, not really. Even though they are popular almost everywhere, there are exceptions.???

Pros:???

• Safe, typically without extra costs for you and your customers.?
• Straightforward for those with bank accounts.?
• Quick processing, often within a few hours.?
• Supports multiple currencies with low exchange fees.?

Cons:?

• Excludes consumers without bank accounts.?
• Setting up automated systems can be expensive.?
• Difficult to process and receive in politically and financially unstable regions.?

Revolut??

Revolut has changed the way many of us pay for our grocery or electricity bills, but it doesn’t suit all consumer preferences.?

Pros:?

• Fast and with low exchange rates.?
• Popular among tech-savvy consumers.?

Cons:?

• Not available everywhere.?
• Not suitable for non-tech-savvy users.?
• Require initial setup costs.??Digital Wallets?

Digital Wallets?

Smartphone users love e-wallets, but they come with additional costs and limits.??

Pros:?

• Quick and handy for tech-savvy consumers.?
• More and more stores around the globe are taking them.?
• Popular in regions with high mobile phone usage.?

Cons:?

• Setup and security costs.?
• Not available everywhere and only in certain currencies.?
• Users have to pay exchange currency fees.?

?

Prepaid Branded Cards?

Prepaid branded cards are a great way to bring your brand into consumers’ everyday lives but they also bring additional costs.?

Pros:?

• Boost your brand's visibility.?
• Come in both physical and digital formats.?
• Accepted almost everywhere, online and in stores.?

Cons:?

• Issuing and sending out physical cards costs money.?
• Only available in Euros, US and Canadian Dollars, and British Pounds.?
• Customers are charged currency exchange and annual fees on unused money.?
• Digital cards can't be used in stores unless linked to a digital wallet.?

Let’s stop here for today. But there are other cashback payment options you can consider for your campaign, like cheques and cryptocurrencies.??

To learn more about these payment solutions or delve deeper into the ones we discussed today, check out our Cashback Payment Options Guide for Marketers.??

And if you have any questions, feel free to reach out.??

Until next time,?

Jamie?