Post demonetization, one area that has definitely witnessed all round progress is the promotion of cashless instruments in the country. In the domain of loyalty programs which involve lot of payouts to partners, this is going to have many implications.
Payouts for retailer and distributor loyalty programs are currently handled primarily through rewards as the scale of such programs is usually lower and the payout size is higher. But when it comes to influencer programs for target audience such as electricians, plumbers, carpenters, etc. the scale is much higher and the payout size is usually lower. Moreover, target groups like these will look for instant gratification and wouldn’t want to wait for longer period for the points to accumulate before redemption. As of now different organizations are trying to handle this complexity in different ways.
Our recommendation, even before demonetisation, for these kind of programs is to rely on digital payment instruments. Channels such as mobile wallets and reloadable cash cards are easier to manage on higher scale and even smaller payments to the tune of 50 to 100 rupees can be done quite easily in these instruments. The only challenge was the acceptance of such instruments among the target group and the comfort with which they could use them.
Demonetisation however has been a shot in the arm for such instruments. We have all been witness to the immense penetration that PayTm and card swipe machines have managed since November 8th. Suddenly for a small electrician, who used to view cards and mobile wallets as something much above his limited means, these instruments have come within the reach. Lot of merchants that he transacts with have also started accepting these instruments for the first time ever. The acceptance of such instruments has gone up exponentially in the last few months.
We have recently launched couple of programs which rely on reloadable cash cards. These cards are issued by banks along with some registered partners and are backed by Visa/MasterCard. These cards can be recharged remotely and can be used at any merchant accepting credit cards. The acceptance these cards are witnessing is tremendous and the partners are also finding them very easy to use.
We are glad that our trust in this kind of instruments to manage large scale programs easily has been vindicated. Our clients are reaping the benefits of being able to engage with their influencers directly and pay their incentives with no issues. If you are looking for an expert partner to help you come up with programs custom designed for you and stay ahead of the curve, please leave an inquiry in the form in this link.
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