First of all, a high level summary of topics:
• Improve Curve’s profitability
• Improve rate of Cashback payments
• Multi and Virtual Cards
Second, I should probably state a couple of assumptions that if false might render some (or all) of the following moot!
A) Curve make their revenue on a mixture of basic card transaction fees, MasterCard interchange fees, and anonymised & aggregated consumer spending behaviour data.
B) The transaction fee (or revenue otherwise earned) is higher if the transaction is carried out on a commercial Curve card than a domestic one.
C) Similarly, the cost to Curve is higher if the underlying payment card is commercial
D) Curve are near enough profitable without funding and card membership subscriptions. (Honestly, I’m worried about this one.)
E) The reason Amex have thrown their toys out of their pram is a mixture of reduced revenue per transaction and loss of consumer spending habit data.
So, finally, to my suggestions:
Get support for multiple and virtual cards over the line.
This will allow Curve to issue at least 2 physical cards to everyone. One could be commercial and one domestic or, (don’t shoot me), one could be Amex*) as well as some number of additional virtual cards and/or physical cards to be kept locked as spares in case the main cards are forgotten at home or lost. (Personally, I’m not sure I see the value of virtual (non-physical) cards.)
*I’m assuming Amex might pay even more commission and this might acquiesce their strop and bring them back to the table allowing underlying cards to be Amex again too.)
The commercial (and/or Amex) Curve card could (if my assumptions about earning Curve more revenue are correct) afford to yield greater rewards to Curve users.
Cashback could even become available at a low rate (¼%?)on the ‘premium’ card to even free-tier Curve users.
For the Black and Metal tiers a rate higher than just 1% (and potentially even at every retailer) may still be profitable for Curve and would put Curve in a market-leading position rather than just on a par (at best) with other cashback cards.
I think that about covers it. I look forward to the Curve response to this as it will be interesting to see if how I think Curve works is even close to being right and if the last hour typing all this out was worth it!
All the best all,