UK banks and FinTechs provide tech boost to loyalty

Loyalty and rewards schemes are hugely popular in the UK, with a recent PYMNTS report revealing that around 40% of the UK’s 67 million people belong to grocer loyalty schemes, while 63 % of UK shoppers use at least one grocer loyalty program.

Read the PYMNTS report: What UK consumers expect from their grocery experiences

However, the abundance of these schemes and programs has left customers with the daunting task of having to juggle multiple plastic loyalty cards and apps to claim their points and rewards.

UK loyalty program startup Bink is looking to remove this friction from the shopper experience and has partnered with banks to offer a digital solution that links a customer’s bank cards to their loyalty programs. which makes it easy for millions of banking customers to claim rewards.

Launched in 2015, the London-based loyalty app startup first signed a banking partnership with Barclays in 2019. It recently signed a second deal with the UK’s largest high street lender, Lloyds, which acquired a minority stake in Bink as part of the deal. .

Related: High Street Bank Lloyds Acquires Stake in FinTech Loyalty App Bink

“What the banks [Barclays and Lloyds] try to do is provide value-added services to their consumers, and by integrating our technology directly into their mobile banking applications, we bring this frictionless value-added service to all of their customers,” said Bink CEO Mike Jordan, to PYMNTS in an interview.

With this offer, users who purchase with their payment cards are easily identified and automatically rewarded without the need to scan an additional loyalty card.

“There is simply no need to carry a loyalty card or even receive one in the first place, which is also ideal for new people joining a program in terms of environmental footprint – you no longer have need to send plastic cards to people,” he said. Explain.

Overdue change in the loyalty industry

According to Jordan, collaborations are a great way to get new merchants to join existing loyalty or engagement programs, or create new ones and quickly increase membership, while providing merchants with data. high quality from banking partners.

“Data is an important part of the value we bring to retailers,” he said. “What we then ensure is that every time that consumer pays, we are able to tell the retailer that the consumer has been there.”

See also: PYMNTS Report – “Making Loyalty Work for Small Businesses”

Before Bink, if a customer was pressed for time or left their card at home, merchants couldn’t access this personalized data about their buying behaviors and ended up with a fragmented customer record.

Thanks to Bink’s technology solution, Payment Linked Loyalty, merchants now always get personalized purchase information, allowing them to leverage this “rich data” and provide customers with better deals.

At a time when retailers are opening up and trying to grow their businesses post-pandemic, Jordan said the need for omnichannel is greater than ever, and helping retailers connect their businesses is critical. online and physical.

“We’re able to help them match a transaction in a brick-and-mortar store to an individual – and if that individual is also shopping online, we can link everything together,” he noted.

Overall, Jordan said Bink’s technology solution that Bink is offering in the loyalty space is long overdue and organizations that don’t keep pace with innovation will be left behind, especially that younger generations continue to expect seamless and frictionless processes in payments and other related areas.

“What we are bringing to market is a late technological development,” he said. “It doesn’t make sense to consumers anymore, when payments are becoming so seamless, that part of this payment process as it relates to loyalty is still so old-fashioned.”

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On: Forty-two percent of US consumers are more likely to open accounts with financial institutions that facilitate automatic sharing of their bank details upon sign-up. The PYMNTS study Account opening and loan management in the digital environmentsurveyed 2,300 consumers to explore how FIs can leverage open banking to engage customers and create a better account opening experience.

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