Digital Transactions Authoritative, insightful and timely information for payments professionals
Prizeout, a fintech specializing in digital gift card payouts and cashback rewards, announced CashBack + Pay late Tuesday, a cashback program for debit card holders whose cards have been issued by credit unions. CashBack+ Pay gives credit union debit card holdings instant rewards averaging 6.8% of the transaction amount, the company says.
Prizeout developed CashBack + Pay was developed to provide debit card holders access to the same type of rewards programs typically reserved for “premium credit card holders,” the company adds.
“[We] built CashBack+ Pay to give credit union debit card users a way to earn real, instant cashback on everyday purchases without relying on credit,” David Metz, founder and chief executive of Prizeout says by email. “CashBack+ Pay gives debit card users instant cashback at the point of sale, often delivering nearly double what credit cards offer-no points, no waiting. Just instant cashback.”
CashBack + Pay is also built for credit unions, which typically play catch up to larger financial institutions when it comes to rewards, according to Metz,” CashBack + Pay helps credit unions earn more non-interest income, surpassing traditional debit interchange,” Metz says. “Historically, credit unions were the ones trying to catch up to innovation–now, they are the ones leading it.
By offering more than double the cash back rewards than credit card holders typically earn, New York City-based Prizeout expects to drive high levels of consumer engagement, loyalty, and increased transaction volume. “In this competitive financial landscape, offering instant, higher-than-average cashback helps credit unions stand out from big banks and deliver real, tangible value to their members,” Metz says.
During the pilot phase, Michigan State Credit Union says it saw a 16% increase in debit card usage. The program also generated positive feedback, especially when it came to ease of use and convenience, the credit union says.
Available for download through the App Store for iOS and as a desktop browser from the Chrome web store, CashBack + Pay allows users to purchase digital gift cards for the exact amount of their checkout total at the point of sale. Once linked to the program, consumers can shop online or in store directly from their credit union bank account. CashBack + Pay users can also track their total savings within the app. Cashback earned, often twice what traditional credit card rewards offer, is applied immediately to the cardholder’s account. “No points. No waiting. Just real money, instantly,” Metz says.
