Twid Unveils Industry-First ‘Reward Mandates’ to Revolutionise Subscription Payment Setups, Anticipates 15%-20% Reduction in Payment Failures
Twid, Indias leading rewards-based payment network announces the launch of the Reward Mandates, designed to transform the landscape of subscription payment mandates by integrating rewards into recurring transactions. This industry-first solution, introduced under the NPCI Partner Program at the Global Fintech Festival 2024, is set to enhance the efficiency and appeal of subscription payment setups across a wide range of services.
Recurring Payments are Automatic-Why Aren’t the Rewards
With Twids Reward Mandates, this gap is finally addressed. Twid’s solution revolutionises the traditional subscription payment system by automatically integrating rewards into every recurring transaction made through payment mandates. Even in cases where the reward points balance is low or depleted, the payments continue to process seamlessly with the customer earning points on these transactions. This ensures uninterrupted service while enabling customers to maximise the benefits of their rewards.
This innovative approach offers a significant cost-saving opportunity for consumers by allowing them to offset subscription expenses with reward points, thereby reducing their overall expenditure. In addition, customers benefit from cashback in the form of reward points for future payments, extending the utility of their rewards even further. This is applicable on all auto-pay setups such as payment for OTT platforms, newspaper subscriptions, premium apps like gaming subscriptions, utility bills, insurance, SaaS service subscriptions, e-commerce platforms, food delivery, DTH charges, membership-based payments etc.
Traditionally, merchants offer incentives to encourage customers to set up subscription payments. However, these incentives often fail to maintain customer engagement throughout the lifecycle of the subscription, leading to high churn rates. Twid’s Reward Mandates address this issue by integrating rewards into every recurring payment, which keeps customers engaged and motivated.
By introducing Reward Mandates, merchants can expect at least a 12% increase in subscription conversions, as the added rewards encourage more users to complete the setup process. Moreover, Reward Mandates are projected to reduce the churn rate of subscription payments by 15-20%, as customers are less likely to pause or cancel their mandates when they receive ongoing rewards. This reduction in churn, along with the extended duration of mandates, boosts the lifetime value (LTV) of customers by up to three times, making customer acquisition and retention far more cost-effective for merchants.
For merchants, Reward Mandates offer a solution to the challenge of sustaining offers tied to subscriptions, particularly on OTT platforms. Until now, these offers have been fully funded by merchants, leading to a significant financial burden. Reward Mandates help offset this cost, reducing the “offer burn” and improving the overall economics of subscription-based models.
“There is no sustainable funding method for offers tied to subscriptions, as they involve multiple transactions and rely on user loyalty. Our Rewards Mandates address this issue by offering higher conversion and the lowest churn,”said Vaibhav Srivastava, Senior VP-Products, Twid.
About Twid
Founded in 2020 by Amit Koshal (Co-founder & CEO), Rishi Batra (Co-founder & COO), and Amit Sharma (Co-founder & CTO), Twid has built a rewards-based payment network turning reward points into a fully fungible currency that can be used for anything, anywhere. With affiliations to notable names like Axis Bank, YES BANK, IndusInd Bank, Flipkart Supercoin, Intermiles, and Payback, among others, Twid boasts access to a substantial points pool of approximately $2.2 billion. These accumulated points are currently being utilized at a vast network of over 100,000 merchants across India. The company received Series-A funding of $12 Mn led by Rakuten Capital and Google. Twid is part of the VISA Accelerator Program 2023 to co-create the industry’s first innovative payment solutions.
