Partnership Signals Growth Of Merchant-Funded Bank Marketing Offers

TSYS has announced an agreement with Truaxis, a MasterCard company, that will enable retail financial institutions to present transaction- and behavior-specific marketing offers to their customers. The new offering integrates MasterCard cardholder spending patterns and behaviors with the TSYS platform so banks and credit unions can deliver personalized rewards, offers, loyalty incentives and other services to financial consumers.

The partnership represents the financial industry’s growing interest in third-party marketing strategies that target online banking users, also known as merchant-funded rewards.

A recent study by Aite Group found that 45% of consumers are interested in receiving “daily deal” style offers from their primary financial institution. Aite estimates that by 2015, more than 460 million U.S. cardholders will subscribe to merchant-funded incentive programs.

“TSYS has the ability to work with any partner to offer our clients a variety of innovative solutions that add increased value to their cardholders,” said Paul Bridgewater, group executive of Global Product, TSYS. “Using data analysis to introduce relevant offers based on behavior is an incredibly active space for us, and we are excited about the prospects.”

TSYS offers global solutions that allow businesses, retailers and financial institutions to capitalize on big data insights and fine-tune marketing and loyalty programs through enhanced analytics and transaction-level data. The result is what TSYS describes as “delivering the right offers to the right customers at the right time, through existing channels — online banking, mobile, SMS, email and print statements.”

Schwark Satyavolu, co-founder and chief executive officer of Truaxis, says this kind of partnership marketing is a win-win-win for everyone. “It enables an ecosystem where cardholders get tailored rewards, offers and personalized bill analysis… Merchants get cost-effective, customizable and measurable marketing capabilities… And financial institutions gain access to new revenue opportunities and increased customer engagement and loyalty,” Satyavolu said.

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