“Innovation is seeing changes as an opportunity!” This has become true for the retail business as now they have started adopting innovative solutions like prepaid card programs into their business!
A study shows that the value of transactions made over prepaid cards will exceed $4.1 trillion globally by 2026. This stat indicates that there will be an increasing adoption of prepaid card solutions.
As it turns out, a prepaid card platform not only boosts customer loyalty but also ensures high-end security! Both of these are the arms and legs of the retail business. But how does it do that?
In this blog post, you will shop the knowledge of how prepaid card solutions can boost customer loyalty and security for your retail business! By the end, you will know the importance of both of them and the role of prepaid cards in boosting them.
So, let’s enter right into what’s in store for you!
Importance of customer loyalty and security for retailers
Customer loyalty and security are essential as well as challenging things to achieve for retailers. If the customers don't keep coming back to your store, what's the point of running a retail chain? If your business is not secure enough to entrust your customers, it needs to change.
Here’s how customer loyalty and security are important for retailers:
Customer loyalty
Customers are the main stakeholders in the retail business. The more the customers keep coming back to their stores, the more the opportunity to make sales and profits out of them. The moment they start feeling content about buying stuff from your store they will become repeat visitors and customers.
It’s like that burger you ate someplace and you were not able to forget that delicious taste of the burger along with its sizzling side dip. You felt so good after eating that food that you started visiting the place quite often, and after a while, you became a regular at that place.
The moral is, “Customer loyalty is very important”.
Security
Imagine your customer being hesitant to buy from your store as they think that their money or personal information is at risk. They would think twice about buying due to this. You don’t want your customers to be in such an environment. This can not only lose the existing customers but will also not bring a good flow of new customers.
The negative reviews out in the market can destroy your business loyalty ultimately and losses would become a regular occurrence for the business. So, it's vital to emphasize your focus on offering the best-in-class security features and measures.
The good news is, that you can overcome these biggest obstacles in your business growth with advanced prepaid card solutions.
What’s a prepaid card solution?
Prepaid card solution is an advanced fintech innovation that enables businesses to issue, activate, and manage card programs for their customers. The company makes prepaid cards in its own name, issue prepaid cards to its customers, and offers various programs, discounts, services, and offers via those prepaid cards.
The role of prepaid card solutions in boosting customer loyalty for retail businesses
The significance of customer loyalty is totally undeniable. The growth and long-term success of a retail business can be highly influenced by consumer behavior towards your store. Prepaid card platform can boost customer loyalty for your business like a PRO!
The major factors contributing to it are:
Convenience and ease of use
Customers crave for a seamless experience. Prepaid card solution with its simple-to-use capabilities make it so much more convenient. They don’t need to carry any cash or credit cards. There are no extra bills or interest charges.
All they have to do is preload the cards with funds and make online payments with just a simple tap on the payment terminal or device. How easy! For retailers, it becomes very easy to receive funds in the account and keep track of revenue and funds without manual work or any transaction fees due to this prepaid card management software.
Compelling loyalty programs
Studies show that 70% of customers will likely recommend a business if it has a customer loyalty program in place. Custom loyalty programs are designed specifically to earn customer loyalty and retain customers for a longer period of time, and eventually for a lifetime.
Prepaid card solutions allow you to create compelling loyalty programs for your customers. They can earn rewards or points for visiting and making purchases at the store. For example, with the Starbucks reward card, users get 1 star (loyalty point) for every 1 dollar spent and once they collect 25 stars, they can redeem a reward of price for it.
The loyalty programs created with the help of prepaid card platform can be customized based on your business needs. You can add tired offers, restrictions on redeeming offers, schedule offers on a timely basis, and set beacon technology integration to keep your customers happy.
Cashback and rewards
The prepaid card solutions enable retailers to boost satisfaction by providing cashback on prepaid card purchases or when registering for a card. Rewards like monthly sweepstakes entries or free products also drive loyalty. This way customers keep coming back to earn more perks.
Custom branding and gift-giving
Prepaid card solutions are customizable. This allows you to issue prepaid cards to the customers as your branded cards, with your company logo, card colors, themes, fonts and everything else. This way when the cards are with your customers, their visibility increases, and eventually it becomes their go-to card.
The prepaid card platform can also provide prepaid cards as gifting options to your customers. They can gift them to their loved ones, friends, and family on special occasions.
Budgeting and expense control
With this business prepaid card solution, customers can control spending and stick to budgets. The pre-loaded balances prevent overspending. Customers enjoy prepaid cards to allocate funds for specific goals like vacations or home projects.
How prepaid card management adds value to retail chains?
How does a prepaid card solution offer boosted security for retailers?
Along with improving customer loyalty, prepaid card solutions enable retailers to significantly enhance security and fraud prevention. A prepaid card management software utilizes advanced technologies to safeguard sensitive customer data. The factors or features contributing to offering top-notch security are:
Encryption
Prepaid card solutions offer an encryption feature that can encrypt all customer data and payment information to protect sensitive cardholder data as it is transmitted and stored. Encryption makes the data unreadable for unauthorized users and prevents any data breaches possible while utilizing prepaid cards.
Tokenization
This business prepaid card solutions offers tokenization security! Tokenization converts the sensitive information of the customers into unique tokens which are generally only one-time use for that particular transaction. Tokens have no value to cybercriminals.
A prepaid card solution offers this security feature because even if the sensitive data of the users is compromised, original account numbers cannot be accessed. This helps to further protect the data and reduce the risk of data breaches.
Access controls
Prepaid card solutions offer an advanced feature of access controls where a business restricts access to the cardholder data to only authorized users. This prevents unauthorized changes.
Also, the role-based access controls with the prepaid card management software ensure that users only have access to the data that they need to perform their jobs. Moreover, customer data access requires multi-factor authentication limiting access to only essential personnel.
Monitoring and alerts
This business prepaid card solutions’ real-time monitoring and alerts can help businesses identify and respond to suspicious activities and security threats in real-time - instantly and accurately. This prevents fraudulent activities and large-scale data breaches from occurring beforehand.
Compliance and regular audits
The prepaid card management software implies that the issuers (retailers in this case) adhere to industry security standards like PCI DSS, that govern the payment card data management. Total compliance with these security standards ensures that businesses stay ahead by following the best practices out there for security and compliance.
Moreover, the prepaid card systems are regularly audited to ensure that they are meeting security and compliance requirements. Audits can help identify vulnerabilities and areas for improvement, helping to further strengthen security.
Better Tracking and Statements
With prepaid card solutions, retailers can keep better track of the transactions, as when a customer swipes or taps a prepaid card to the payment terminal, the transaction data reflects directly into the admin panel of the business with payment and personal information.
Additionally, prepaid card systems give customers 24/7 access to prepaid account statements showing detailed transaction history to identify unauthorized activity. Customers can also receive transaction alerts through mobile apps.
Improved data security & fraud Prevention,
With all the security features and protocols offered by prepaid card solutions, it becomes easy to secure data and prevent fraud.
The advanced security protections of encryption, tokenization, strict access controls, continuous monitoring, compliance, and detailed statements. All of them have resulted in vastly improved data security and fraud prevention compared to cash or traditional payment cards.
How DigiPay.Guru can help?
DigiPay.Guru offers an advanced prepaid card solution that empowers fintech innovators to effortlessly issue, accept, process, manage, and handle prepaid cards. We offer physical, virtual, and tokenized prepaid card systems globally! We also offer it as a SaaS-based prepaid card solution if you just want to begin utilizing it at an affordable price.
We are the prepaid card solution providers offering customer loyalty and security as our fully secure prepaid card issuance platform provides you with powerful solutions to enhance customer engagement, boost working capital, and amplify brand value.
It also offers security features like biometrics, encryption, tokenization, access controls, compliance adherence, and more to protect you and your customer's data from fraudulent activities.
