Mir launches a loyalty program with up to 15% cash back
23.12.2016 228 views
The national payment card system (NSPK) is launching a pilot loyalty program, which provides for cashbacks in the amount of 10-15% of the purchase value. The project participants are SMP Bank, Rossia Bank, SDM-Bank and the Moscow Industrial Bank.
The Mir card loyalty pilot started on Wednesday, 21 December, with its full-scale operation scheduled for 2017. The programme will be available for the Mir cardholders in Moscow and in the Moscow and Leningrad regions.
The pilot programme participants are SMP Bank, Rossia Bank, SDM-Bank and the Moscow Industrial Bank. City Taxi, Inna Tour, Pudra and others joined as partners. The cardholders independently select the purchase categories and campaigns of interest to them, and receive money on each purchase within the campaign framework, NSPK explained.
Cashback as part of the Mir card loyalty programme provides for very generous 10-15%, while banks usually limit the amount by more modest 1-5%. The payment system’s press office says that a higher rate will boost the activity of Mir cardholders insofar it concerns payments for goods and services. “The new opportunity for getting additional discounts and bonuses on the cards influences the transactional activity of customers,” comments Elena Bindusova, Director of Payment Systems Department at SMP Bank.
As an example, she mentioned the co-branded Mir cards saying that the average monthly number of transactions on them is a half as much in comparison with traditional premium cards Mir, while the average transaction value is even twice as much. Elena Bindusova in turn says that similar figures are demonstrated by the international payment systems (IPS). According to her, the availability of a loyalty programme is a prerequisite enabling the Mir cards to compete with the cards of the international payment systems.
According to Anna Stekolnikova, Head of Processing Department at SDM-Bank, the Mir card is mostly used by public sector workers and it is not actively used for payments for goods and services. “The retail segment has not demonstrated great activity so far, but with the loyalty programme to come, I think the situation will begin to change in the other way round,” said the representative of SDM-Bank.
Igor Gaydarzhi, Director of Development Department at BIN-Bank, believes the loyalty programme is an important element that often determines the customer’s choice of bank and payment card. It also affects the transactional activity of cardholders. The BIN-Bank representative argues that the introduction of their own loyalty programme increased the project participants’ turnovers by approximately 25% over the last year.
However, it is too early to talk about how beneficial the Mir loyalty programme is going to be, said a representative of a major retail bank, who preferred to remain unidentified. He noted that too few customers have been involved in it so far. The real effect of this program can be seen no sooner than some time after its full-scale launch, as well as in the wake of the growth of interest of ordinary Russians to the domestic “plastic”.
According to NSPK, today 42% of transactions are cash withdrawals, and the remaining part – payments for goods and services. The number of Mir cards in issue is 1.67 million to reach 2-3 million by the end of 2016.
Source: Retail & Loyalty