Does the term ‘cashback’ ring a bell? I am sure we all get excited when we hear about cashback. Who doesn’t want their money back, am I right? How well do we really know about cashback is the real question.
How does it work?
Cashback is a rewards programme where a small percentage of the amount spent or points equivalent on purchases is credited back into a user’s account. The most common cashback programme is linked with credit cards. Additionally, there are also wallet apps and point system rewards that have developed in recent years. It’s one of the most promotional cash mechanisms that benefit both users and businesses.
Benefits Of Cashback
Firstly, users can have long term savings. Cashback amounts might seem small and insignificant, but over time you’re able to reach a sizable savings amount. This is great for anyone, and especially avid shoppers. Secondly, there are many sign-up perks and shopping incentives available when you opt for cashback programmes. Lastly, it’s a very straightforward savings system that allows you to track your cashback easily, unlike investing that can be an intricate process.
We understand the benefits that users get, but how does this system help businesses? According to gotoclient, businesses do not need to devalue their products by offering a discount with cashback. By providing a financial incentive to their customers, AKA you, they can increase sales and revenue.
Types of Cashback Rewards
Cashback Credit Cards
Getting a cashback credit card is a convenient way for you to increase your savings. The most efficient method is spending with a cashback card that gives you immediate rebates on your purchase. Here are our recommendations for cashback rewards that help you with your savings. The Citi Cash Back+ Mastercard gives up to 8% rebates on dining, groceries, petrol and more when you sign up.
Currently, there’s a Singsaver credit card promotion where you can get a Dyson TP03 Air Purifier or Apple Vouchers or $350 cash. New Citibank members can choose from one of the mentioned rewards when they sign up.
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Citi Bank: Sign up and get free sign up gifts
There are also cashback loyalty programmes where you’ll accumulate points instead of receiving the money in your account. The difference between cashback and points lies in the flexibility provided to the customers. For instance, cashback allows you to utilise the money for any purpose of yours. However, with the loyalty points system, you can exchange a certain amount of points for various vouchers, prizes, and services. Some examples include Shopee Coins, Grab points and Chope-Dollars.
Mobile Wallet Apps
These mobile wallets are virtual wallets that allow users to make transactions and store money using their smartphones. As highlighted by SingSaver, mobile wallets are usually in collaboration with mobile service providers (Singtel), your smartphone’s e-payment solution (Apple Pay/ Google Pay), and banks. In terms of receiving instant cashback, FavePay and GooglePay are well known for providing these incentives. FavePay allows you to pay for any product or service and receive instant cashback from your favourite merchants. GooglePay is known for scratch cards with monetary and discount incentives when you make payments via the wallet.
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