New cards offer cash back instead of airline miles

Newcomers on the market of business credit cards have betted on a different approach to their loyalty programs. Instead of miles, that frustrate customers who can''t put together enough points to travel, they offer credit back in the making. The Nubank still leads its program in test mode, but has said it must allow clients to use points to "delete".
Can have discount Uber racing, spending on services like Netflix and the Spotify, plus air fare and lodgings. To participate, the customer will need to pay about 200 R$ per year. Sought, the Nubank was unavailable for comment. The sheet, in October last year, the Vice President Cristina Junqueira said that the program would only be interesting for customers who spend at least 1,500 R$ per month.
The Original Bank about a year ago launched its operation to individuals, give a percentage of the expenses on the card. Each point is equivalent to $1 of credit in the making, but the percentage spent turning points ranges from 0.25% to 1.75%, as the card and spending. "Brazil suffers every time he goes to rescue mile, but already incorporated this suffering," says Marcos Lacerda, marketing director of the Original.
In both cases, the argument in favour of "cash back"-as it is known this type of program-is the possibility to offer flexibility to the customer, so that he won''t have to accumulate a certain number of points and then hunt promotions to redeem a ticket. The model is not exclusive of the newbies, but is restricted in Brazil. Among the major banks, only Citibank and Banco Santander offer cards of this type.
In Santander, are only 100000 customers in this mode. The Bank intends to relaunch the plastic at the end of the first half, says Rodrigo Cury, Executive Superintendent of cards. Meanwhile, clients can use points on other cards to get credits on their bills.

ALTERNATIVE
The advantage of these programs to the banks is that help retain customers without having to negotiate with companies that manage large programs of miles, as the Smiles and the Multiplus. But the growth should be limited. "The loyalty program has to work the appearance of worth a lot to the consumer and cost far less to the Bank," says Ravi Ramos Freire, Ravi consulting & Cla.
He estimated that frequent flyer program participants can retrieve up to 10% of the expenses on the card with air tickets. The maximum that the "cash back" Brazilians return is equivalent to 2% of monthly expenditures.