American Express stock rose on Monday as the financial services company unveiled an innovative feature. This function allows cash-back cards to use their Reward Dollars directly on Amazon, with a one-to-one value ratio. Customers may use their points to pay in full or in part for items made on Amazon's website or app.This action is …
American Express stock rose on Monday as the financial services company unveiled an innovative feature. This function allows cash-back cards to use their Reward Dollars directly on Amazon, with a one-to-one value ratio. Customers may use their points to pay in full or in part for items made on Amazon’s website or app.
This action is regarded as an attempt to increase client loyalty, in line with research revealing that 65% of credit or debit card users choose brands with loyalty memberships and individualized incentive programs. To use this function, American Express cardholders must link their cards to their Amazon accounts and choose “Reward Dollars” as their payment option at checkout.
This deliberate move comes at a time when many Americans are facing financial difficulties, living paycheck to paycheck, and expressing a feeling of economic deterioration in comparison to the previous year. Regardless, there is a persistent tendency of increased spending throughout the holiday season, which the alliance hopes to capitalize on.
Nonetheless, American Express’ earnings data for October showed a 5% growth in network billed business, topping $400 billion, and a 13% increase in leisure expenditure.
Rajeev Yerukalapudi also highlighted the development of a cooperation between Fiserv and Amazon via the uChoose rewards program. He underlined the importance of giving customers alternatives when redeeming points. This agreement allows users to use their points at the Amazon checkout, supporting Banyan’s findings that tailored rewards may increase customer loyalty.
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