Digital reward schemes will be instrumental in encouraging spend during the pandemic
According to Juniper Research, global reward values for consumer credit cards will grow to $67.9 billion in 2023, up from $60.4 billion this year. That’s due to the fact that consumer credit spend recovers post-COVID.
The report states that digital reward schemes increase brand loyalty by growing the value proposition of repeat spend.
Besides, credit card spend in 2020 reduced by 13% owing to the COVID-19 pandemic. Industries including travel, tourism, and hospitality became the most heavily impacted.
Along with that, the number of credit cards in issue expected to exceed 3 billion worldwide by 2023. This way, there is potential for brands to leverage card ownership and foster loyalty using rewards.
We’ve reported that 29% of Americans are turning to rewards balances to help them stretch their budgets and buy the essentials.