4th Sept 2024 Bangalore, Karnataka, India Twid, India’s leading rewards-based payment network announces the launch of the Reward Mandates, designed to transform the landscape of subscription payment mandates by integrating rewards into recurring transactions. This industry-first solution, introduced under the NPCI Partner Program at the Global Fintech Festival 2024, is set to enhance the efficiency and appeal of subscription payment setups across a wide range of services.
With Twid’s Reward Mandates, this gap is finally addressed. Twid’s solution revolutionizes the traditional subscription payment system by automatically integrating rewards into every recurring transaction made through payment mandates. Even in cases where the reward points balance is low or depleted, the payments continue to process seamlessly with the customer earning points on these transactions. This ensures uninterrupted service while enabling customers to maximize the benefits of their rewards.
This innovative approach offers a significant cost-saving opportunity for consumers by allowing them to offset subscription expenses with reward points, thereby reducing their overall expenditure. In addition, customers benefit from cashback in the form of reward points for future payments, extending the utility of their rewards even further. This is applicable on all auto-pay setups such as payment for OTT platforms, newspaper subscriptions, premium apps like gaming subscriptions, utility bills, insurance, SaaS service subscriptions, e-commerce platforms, food delivery, DTH charges, membership-based payments etc.
Traditionally, merchants offer incentives to encourage customers to set up subscription payments. However, these incentives often fail to maintain customer engagement throughout the lifecycle of the subscription, leading to high churn rates. Twid’s Reward Mandates address this issue by integrating rewards into every recurring payment, which keeps customers engaged and motivated.
By introducing Reward Mandates, merchants can expect at least a 12% increase in subscription conversions, as the added rewards encourage more users to complete the setup process. Moreover, Reward Mandates are projected to reduce the churn rate of subscription payments by 15-20%, as customers are less likely to pause or cancel their mandates when they receive ongoing rewards. This reduction in churn, along with the extended duration of mandates, boosts the lifetime value (LTV) of customers by up to three times, making customer acquisition and retention far more cost-effective for merchants.
For merchants, Reward Mandates offer a solution to the challenge of sustaining offers tied to subscriptions, particularly on OTT platforms. Until now, these offers have been fully funded by merchants, leading to a significant financial burden. Reward Mandates help offset this cost, reducing the “offer burn” and improving the overall economics of subscription-based models.
“There is no sustainable funding method for offers tied to subscriptions, as they involve multiple transactions and rely on user loyalty. Our Rewards Mandates address this issue by offering higher conversion and the lowest churn,” said Vaibhav Srivastava, Senior Products, Twid.