Prospects and benefits of integrating offline retailers with fintech solutions

Mar 5, 2024
4 min

In today's dynamic market, consumers are spoilt for choice, creating a competitive landscape that propels merchants to constantly enhance their strategies for customer engagement. The evolution of the market has given rise to innovative approaches, with loyalty programs standing out as a key tool for fostering lasting relationships with consumers.

In this era of digital transformation, integrating offline retailers with fintech solutions presents a golden opportunity for businesses to elevate their customer experience and fuel growth. This article explores how leveraging digital banking products, such as the advanced features offered by Blackcatcard, can revolutionize loyalty programs and drive business success.

Strengthening the retailer-customer relationship

Traditionally, merchants have forged connections with consumers through branded loyalty cards, symbolizing exclusivity and offering tangible benefits like discounts, cashbacks, and loyalty points. While these programs are common in large chain stores, not every retailer has the resources or the plan to develop dedicated apps or issue physical cards.

Enter fintech solutions: an invaluable resource for retailers seeking to enhance loyalty programs without significant investment. By collaborating with fintech companies, businesses can tap into white label solutions. Have you ever noticed how airlines or even home delivery apps issue payment cards with their brand to their customers, with which they can accumulate miles or points for future purchases? Although it may seem that they are the ones who directly issue the cards, in fact, they are issued by a financial institution that offers this payment solution with the merchant’s brand.

This approach allows retailers to offer payment cards without the burden of card issuance costs and even more important - propose their customers additional benefits and perks integrated directly by their fintech partner into the payment loyalty card. As a result retailers, who collaborate with fintech receive a double stronger offer to retain their customers.

The Fintech Advantage

Modern Fintech brands, like Blackcatcard, pursue the strategy of embedded finance. This usually means integration of financial services into non-financial offerings. Examples of embedded finance might include an e-commerce merchant providing insurance, a coffee shop app that offers 1-click payments, or a department store's branded credit card.

Blackcatcard has 2 ways of interacting with partners. Firstly, there are co-branded cards that a merchant can distribute among their customers alongside a specifically designed cashback or bonus program in partnership with Blackcatcard. On the other hand, the brand can “share” its own already existing rewards program or some specific offers with a partner which is less time consuming but lacks the uniqueness. Customers will be able to enjoy these benefits simply by making purchases from the merchant with their Blackcatcard payment cards    

Thanks to the abovementioned embedded finance strategy, consumers will have rewards within the Blackcatcard loyalty program - and that’s on top of what retailers can offer on their own.

Among these benefits users can receive up to 4%* per annum on the balance of money they have in a Blackcatcard account. Cashback of 0.5%* for purchases with any Blackcatcard is also available. From a customer's perspective it appears that they receive these rewards from the retail store, which makes them associate a positive shopping experience and service with that specific brand.

Even without the сards with special branded design, retailers can integrate into the Blackcatcard loyalty program alongside major global brands already on it - Amazon and Google Play. This way businesses can attract the attention of their customers and increase their users' traffic through our platform.

In essence, the integration of offline retailers with fintech solutions is not just a modernization strategy; it's a transformative opportunity for businesses. By adopting fintech products as an extension of their own offerings, merchants can streamline operations, boost customer activity, and enhance the overall perception of their retail brand. By leveraging fintech products as if they were their own, businesses can take the consumer experience to a new level.

*The rewards are provided by FINTECH ASSETS OÜ. More details here.


What are the benefits of integrating fintech companies' solutions with offline retail businesses?

The benefits are many. Among the most prominent are the integration of payment tools and fintech rewards programs with a retail store's own products.

What is embedded finance?

It is a model of cooperation between a financial institution and a business in another sector, whereby the latter integrates the products of the former into its own to improve the consumer experience of its customers.

What solutions can Blackcatcard offer?

Online and offline retailers can find in our fintech ecosystem payment methods, payment cards and a rewards program, provided by FINTECH ASSETS OÜ*, which these merchants can offer to their customers to increase loyalty and attract new ones.

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