How Cash Reward Apps Serve Both Individuals and Businesses

The idea of getting rewarded for spending money isn’t a new one, and you will surely have come across several variations of this over your life. Whether it’s a reward scheme in a specific store, set up with your credit card, or some sort of airpoints system, these encourage the individual to spend at certain places. The rewards are usually tied into a point system, gift cards, or in some cases a cashback.

The modern cash rewards app has come a long way to become what it is today, and while it still serves it’s original purpose of encouraging spending, one could argue the individual gains more than ever. Although that doesn’t mean that any businesses are losing from working with a cash rewards app, in fact quite the opposite. 

In this modern age where the consumer and producer is being pit against each other so viciously, it’s important to remember that some aspects of this system benefit us all.

How Does it Work?

To understand how the modern cash rewards app works, it can help to consider how the original credit card cash back systems work. 

Credit Card Cash Back

Some credit card providers would offer cards which had a cash back reward scheme tied to them. This would encourage the customer to spend more money, which in turn would make the bank or credit card more money through interest. 

So to reward the customer and to encourage further spending, credit card companies would offer some percentage of the cash spent back in one of a few different forms:

- a deposit of cash directly into your bank account, either at any time or once it’s reached certain amounts

- credit to use against your credit card balance

- a gift card or discount for a specific store

- a donation to a charity of their (or your) choosing

Cash Rewards App

The modern cash rewards app isn’t too different from the credit card cash backs of yesteryear. In fact, many neobanks are implementing cash rewards into their apps, so one can expect to see this become more common.

The features which are offered as cash rewards on neobanking apps can include:

- Cash back at certain stores and cash back in general

- One-time rewards for loading money into the app 

- Rewards for staking built-in cryptocurrencies

- Affiliate reward programs for encouraging others to use the app

Benefit to the Individual

While it may seem relatively obvious, there are a few ways in which an individual can truly benefit from utilizing a neobank with cash rewards app.

More Bang for your Buck

While the cash back at stores may only ever be between 2 and 10%, those little numbers will quickly add up over time. Imagine getting 5% of your yearly spending back, that would amount to around $3,000 annually, now imagine getting given $3,000 and how much of a difference that would make.

Makes it Easier to Buy what you Need

The obsessive materialism which is rife nowadays makes some people feel guilty about buying even that which they need. But knowing you’re getting some of that money back, or for all intents and purposes a discount, you may be more comfortable in that transaction.

Benefit to the Business

The modern marketplace is cut throat and to really stand out your business needs to go above and beyond what your competitors are comfortable with. This is where working alongside a cash rewards app can really benefit your business.

Broaden Demographic

By tying your business into one of these apps, you will have customers literally brought to your doorstep (or landing page) at the prospect of getting cash back. These apps will help you broaden your demographic, and can even help you tap into market areas you weren’t even aware of.

More Confident Customers

It’s proven that a customer who knows they are going to pay less than the listed price will likely spend more in-store (or online). By offering a cash back scheme you will essentially be giving them an individual discount which will make them feel more confident in spending money on your goods and/or services.

Benefit to Both

Beyond this there are a couple of other benefits which work on a more holistic level.

Enhanced Economy

People spending money is always good for the economy, as it keeps the lifeforce pumping through all the different parts. 

Charitable Donations

If you opt for a cash rewards app which offers charity as an option you could be literally changing lives by spending money or offering cash back to your customers.