Alviere Debuts Merchant-Funded Rewards for Co-Branded Cards

Embedded finance platform provider Alviere is letting its clients expand their co-branded debit card incentives.

The expansion allows customers to offer merchant-funded rewards, the company said in a Wednesday (March 6) news release.

“Co-branded cards play a critical role in the loyalty and rewards programs of airlines, hotels and retailers to increase customer lifetime value,” the release said. “Now, with merchant-funded rewards, the value of each dollar spent is multiplied, giving more purchase incentives to consumers at no cost to brands issuing the cards.”

Alviere said in the release that free loyalty programs give co-brand, loyalty and reward companies a chance to examine their offers and customize rewards for their customers. The company shared the example of an airline using its co-branded card to offer rewards at hotels, vacation rental marketplaces, or resorts most relevant to passengers.

“Our enterprise clients demand co-branded debit card offers that are as compelling as existing co-branded credit cards,” Alviere Co-founder and CEO Pedro Silva said in the release. “Offering merchant-funded rewards enriches the co-branded debit card value proposition in a loyalty program, at no cost to the issuing brand.”

PYMNTS research found that consumers are fans of personalized rewards, although with some caveats.

For example, the PYMNTS Intelligence report “Personalized Offers Are Powerful — but Too Often Off-Base” found that most consumers want to receive these offers via email, which held true across age groups: 65% of baby boomers and seniors, 68% of Generation Xers, 63% of millennials and 52% of Generation Z consumers.

These younger consumers show the most interest in credit card rewards programs, while members of Gen Z are highly likely to report dissatisfaction, with 41% showing discontent, according to additional research.

“For comparison, just 28% of millennials share this feeling, and Generation X and baby boomers and senior cardholders are more content with current offerings,” PYMNTS wrote earlier this year. “These generational divides suggest that FIs must adapt their reward strategies to win over younger consumers.”

Personalized rewards offers have been a priority for retailers as they try to meet customer demand for targeted discounts.

“As we enter the third year since the move to a point-based rewards program, our members can expect more personalized offers, new tiers and more meaningful rewards,” Tractor Supply Company CEO Hal Lawton told analysts on an earnings call, for example. “These compelling enhancements are designed to drive transactions and engagement, all while migrating customers upwards.”

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