After the coronavirus pandemic forced issuers to adapt rewards, enhance forbearance, and build out digital tools to cope with a volume hit in 2020, they’re looking to reimagine their offerings in the future to add new customers and regain primary card status.

US consumers want Venmo to offer rewards

Offering a loyalty program is an effective way for retailers to acquire new customers, but it also fosters relationships for years to come. Setting up the framework, however, can be challenging—especially if retailers decide to handle everything in-house.

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Home improvement retailer The Home Depot is continuing to build on its loyalty program to create more personalized in-store and online experiences.

Chase just launched the United Quest Card, which features a limited-time 100,000-bonus-mile offer and a bevy of mile-based rewards on travel, dining, and streaming purchases. The issuer also recently announced a card with Air Canada coming later this year that will feature travel rewards as well.

These reward offerings could encourage card spending. Mastercard’s DoorDash and HelloFresh consumer rewards could entice customers to spend considering how popular the food delivery and meal-kit sectors have become during the pandemic.

It’s also worth noting that Amex cardholders stockpiled rewards earlier in the pandemic, likely to put toward travel later on—further evidence that consumers may soon be booking flights. This trend, along with Amex’s new card rewards, can help speed up the issuer’s T&E recovery back to pre-pandemic levels.

DoorDash: The company is rumored to have several bidders lined up for its rewards credit card, including JPMorgan Chase, but is reviewing its options before making a decision in the next few weeks. DoorDash is also in the process of recruiting restaurant partners and stores to offer cardholders rewards and discounts on a rotating or permanent basis.

Consumers are gearing up to spend more this spring as the economy gradually bounces back and might choose the United Quest Card to fund purchases in order to capture the card’s bonus rewards, which they can use toward summer travel plans.

In an attempt to make up for T&E losses and encourage card spending, issuers updated some of their reward offerings to cater to pandemic spending trends, including new rewards for streaming, grocery, and restaurant delivery services. Reward perks could entice consumers and help reinvigorate credit card spending—aiding overall recovery along the way.

In fact, on average, UK affiliate marketers ranked content as the most valuable affiliate model after rewards sites—7.41 on a 10-point scale—in a January 2021 survey by the Internet Advertising Bureau UK (IAB UK).

New initiatives like Bitcoin rewards on Cash Card purchases and the integration of Square Loyalty—Square’s point-of-sale rewards program—into Cash App most likely led users to open the app more often. Cash App users drummed up higher transaction inflows. Dorsey also noted that Cash App inflows in March increased 55% month-over-month.

Recent examples include Starling, which has its MarketPlace as a possible retention product, and NatWest, which recently unveiled SMB offerings including an incubator program and a rewards app from its Tyl unit.

Corporate credit card and rewards fintech Brex recently announced a $49-a-month product that lets SMBs manage their finances in a single dashboard. US-based Pilot raised $100 million in March to help SMBs better manage billing, banking, expenses, and bookkeeping. And Amex is working to position itself as the go-to platform for SMBs, most recently by acquiring alt lender Kabbage.

DriveWealth already lets global brands add investing options to loyalty rewards toolkits, like topping every customer credit card swipe with fractional shares of their stock: “Customers can invest in a fee-based portfolio based on their broader consumption behavior, such as earning stock back from spending money at Starbucks or on Amazon,” CEO Bob Cortright said in an interview with Insider Intelligence