The Future Of Finance & Loyalty Is Open Loop Cards
Open-loop prepaid cards are the fastest growing form of electronic payment, and it’s easy to see why. Used ubiquitously by consumers, businesses, and governments alike, open-loop prepaid cards offer an easy-to-use, secure, and flexible service without all the disadvantages of credit or outdated cheque-based systems. Open-loop prepaid cards can be used anywhere that MasterCard® or Visa® is accepted and work like traditional credit and debit cards, with one very big difference – a set amount of funds has been pre-loaded onto the card.
For businesses, open-loop prepaid cards allow them to properly reward their loyal consumers and to engage and incentivize purchasers in the long term. When it comes to building a strong, loyal consumer base, prepaid cards offer a multitude of benefits.
Benefits For Businesses
Cost-Effective: Businesses can quickly and easily reward customers and pay employees in a fast and cost-effective way.
Streamlined, Efficient, & Flexible: Funds can be sent to consumers electronically, almost instantly, removing the hassle of outdated cheque-based systems. Prepaid cards can be used anywhere most major credit cards are accepted.
Track Where Purchases are Made: Being able to track your customers/employees’ purchase patterns is a MAJOR advantage to a business. This allows you to see what they are interested in, and then properly shift your own marketing strategy to better fit and meet these needs. Companies often spend large sums of money for this kind of insight — data that can be incorporated into your prepaid program reporting.
Free Advertising: Every time someone uses your loyalty card to make a purchase or redeem rewards, both the consumer and the vendor will be made aware that it is through your company’s generosity that this purchase is possible. It’s provides great visibility, can lead to word-of-mouth advertising, and is an excellent way to instill loyalty.
Benefits For Consumers
Prepaid Cards are Easy to Use and are Accepted Virtually Everywhere: Consumers can use their cards to make purchases anywhere in the world the card is accepted, including online and over the phone. The cards work the same as typical credit and debit cards, and offer a more secure alternative to cash.
Instant Access to Funds: Forget about waiting for a cheque to arrive in the mail or clear the bank—funds are ready to be used as soon as they are loaded onto the card, which can take seconds.
A Loyalty Card that Matters: A company offering a loyalty program to its customers is nothing new, but a progressive, forward-thinking loyalty program that actually lets people buy what they want can be the tipping point between choosing one business over another.
As Good as Cash: Open-loop prepaid cards allow customers to use a card just like cash, anywhere they want. And the best part? You can put more money on the card whenever you want.
Protect Yourself: Open-loop prepaid cards are issued by financial institutions and as a result consumers are protected from fraud and loss.