Rewarding Unbanked Card Use

November 29, 2010

For those who think card rewards programs are just for credit/debit cards, think again. A new program, announced today by the prepaid card company AccountNow Inc., offers cash rewards to consumers who use the company's prepaid MasterCard and Visa cards for online purchases.

AccountNow Purchase Rewards, as the program is known, is being driven by Cardlytics, an Atlanta firm that has developed a technology platform that supports multi-channel rewards programs for scores of banks and merchants. And it's being offered free to cardholders, AccountNow said.

Here's how the program works: based on their previous purchases, cardholders shopping online are presented with individualized cash rewards offers for certain choices. Cardholders simply click to activate an offer and use their AccountNow prepaid card number to complete the sale; cash rewards appear on their next card statement.

AccountNow, based in San Ramon, CA, bills its services as "The Better Way to Bank." In addition to prepaid cards, the firm offers, through its Web site, assorted other financial services specifically targetting the unbanked and underserved, including and notably financial education and deposit products

"Providing our cardholders additional value for using their AccountNow card while providing merchants opportunities to increase their business makes perfect sense to us," said Jim Jones, AccountNow's CEO. "I believe this is especially valuable to our ongoing business because the underbanked/unbanked population very seldom gets these types of offers and may be very favorably inclined to remain an AccountNow customer."

"The underbanked population has been growing dramatically over the past few years, and represents a tremendous opportunity to merchants and businesses who want to tap into this market," said Lynne Laub, Cardytics' President.

Only 3% of the total global need for microfinance is being met today

_{-World Vision}