Extra cashback on all Cards and unlimited

As a customer sweetener, both to existing ones and perspectives new ones, Curve could offer a cashback in all Card plans (Curve Blue/Black/Metal) in all payments (not only on select retailers) and for unlimited time.

For Curve:

  • It could retain Curve existing customers and helping growing the payment volumes they do with the Curve card. (Curve have a lot of existing customers that don’t use the card or use it very few.)

  • It could also attract new customers, that will be willing to use the Curve card more often.

As others FinTechs offer a cashback permanently and unlimited, such as, the N26 Business debit card (0.1% cashback in all payments).

My suggestion to Curve, is to give an extra cashback on all cards on all payments on unlimited time. For example, on underlying cards:

  • Debit cards: +0.1% extra cashback (besides all other cashbacks already present);

  • Credit cards: +0.2% extra cashback (besides all other cashbacks already present).

The difference on cashbacks is due to the cap on the interchange fees. Debit cards have a lower maximum interchange fees. But of course, Curve could rise the suggested extra cashback. (I know that debit cards couldn’t give a much higher cashback due to the interchange fees.)

Bottom-line: More customers, more volume of payments, more profitability for Curve. For customers, more user experience, more profitability, more value given by the customers to Curve (less willing to end the commercial links with Curve = more client retention and loyalty to the brand/company).

What do you think?

And what does Curve think about this?

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As a idea it’s terrible (for Curve) as Curve loses money on every transaction we make on consumer cards as it is, so with added cashback to give away…On a commercial card where they do make money then they might be slightly open to the idea but I’m sorry but I don’t see this idea floating any time soon.

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Curve business model isn’t making money with the interchange fees they charge to the merchants, where we buy products and services? Even with personal Curve cards?

Merchants <- Curve <- Underlying bank/EMI

Curve could give away a ton of money but I don’t think that helps to bring profitability and long term stability to the company.

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What? is the monthly fee for the premium and metal cards their only money inflow? Is that enough to cover costs?

No. In 2019 (latest year that they’ve filed accounts for so far), they made a loss of £26.5m on revenue of £5.9m, with cost of sales at £8m.

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3 posts were merged into an existing topic: Mastercard Interchange fee increase