From cost centre to profit centre: rethinking bank rewards

Traditional rewards programmes are run as a cost of doing business. But the economics have changed. A modern loyalty platform lets a bank earn merchant commission, FX margin on travel, and a share of interchange.

Three revenue levers

Merchant-funded cashback shifts the cost of the reward to the merchant while the customer still receives value at online pricing parity. A reward marketplace earns 20–35% merchant margin share. And every redemption is a branded interaction that drives primacy.

The result: a programme that deepens loyalty and opens a new revenue line at the same time.