Twid, the rewards-based payment network, announced the launch of the Reward Mandates, which integrates rewards into recurring transactions. Reward Mandate automatically integrates rewards into every recurring transaction made through payment mandates, which is not possible in a traditional subscription payment system.
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.
Customers can also benefit from cashback in reward points for future payments and 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.
Twid’s Reward Mandates will ensure that payments continue to be processed with customers earning points even on transactions where the reward points balance is low or depleted.
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..
Vaibhav Srivastava, Senior VP-Products, Twid, said, “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.”
