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Rewarding without risk

Loyalty landscape South Africa

Incentives for employees and customers such as rewards and prizes for improved performance or increased uptake of products or services have been used for many years. In South Africa, the loyalty programme landscape is thriving with studies showing that they have a significant influence on consumer behaviour.

According to the 2022 Truth and Brandmapp Loyalty Whitepaper, 73% of economically active South Africans are subscribers to one or more loyalty programme. Retail store programmes are the most popular, but entertainment facilities including movie houses and restaurants, travel and financial services also have a strong following. Of the 73% of South Africans using loyalty programmes, the average number to which they subscribe is 9.2. Cash back is the preferred reward by consumers, whether it pays into the programme or directly onto a bank card and accumulating points for greater rewards is a driver of customers returning to stores and spending more.

The most common mechanism for the recording and spending of points earned through loyalty programmes remains a card. An additional nine or more cards in your wallet or purse is a lot of extra plastic to carry around, and if you leave them behind at home, you run the risk of missing out on your rewards when you make a purchase without swiping.

In the corporate gifting and incentive market, buying and issuing gift cards is a cumbersome process. The cards must be procured, loaded with the appropriate amounts per employee or client and then they must be distributed. With Scan to Pay Vouchers all this is set to change.

Scan to Pay, powered by Ukheshe, is the largest QR ecosystem in South Africa and as such is tried and tested by millions of merchants and consumers. Scan to Pay is the QR payment platform of choice of more than 600,000 vendors, 14 banks and fintech companies and 94 payment service providers as well as six acquirers. A completely cashless, seamless transaction between the customer and the vendor happens by simply directing a phone screen at the displayed voucher, which acts in a similar way to a barcode - and technology does the rest!

The application of Scan to Pay vouchers for use by companies as incentives and gifts and by loyalty programme administrators as a mechanism for delivering rewards carries no risk of fraud or misuse and very low costs. Businesses submit the cell phone number of recipients who in turn receive a notification to download an app where their voucher is stored.

In addition to the low cost and ease of delivery advantages offered by Scan to Pay vouchers, recipients can use them in a variety of ways, including paying for data or airtime, paying bills, and making purchases in stores or online. They can spend some or all of the amount with the voucher remaining valid until all the funds are used up.

With older consumers subscribing to loyalty programmes more than young ones, offering rewards using advanced technology is a way for stores and other services to attract and retain younger customers. In addition, with a greater proportion of women subscribing to card-based programmes – perhaps because a purse holds more than a man’s wallet – Scan to Pay vouchers can be used to gain a new male customer base.

Scan to Pay vouchers are the future of loyalty programme reward management and are definitely a bonus in the run-up to the festive season. Companies can use them to award incentive-based bonuses to staff, or gifts to customers that they can choose to spend where and how they prefer. For the recipient, all their information is secure and is not shared with the service provider - all the information is encoded and embedded in the scan to pay technology.

Scan to Pay vouchers offer a win-win option for service providers and customers alike and are just another way in which the financial services landscape is being changed, thanks to Ukheshe’s innovative product offering.


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