Credit card rewards generally fall into two groups: aspirational (upgrades to first class flights, free hotel stays) and practical (cashback). But what if you could cover the cost space travel or pay off a student loan?
Visa Inc., Mastercard Inc. and major banks are revising their reward programs to cater to young customers who want to use their cards to accumulate wealth or pay off debt, not just for benefits. Newcomers to fintech or fintech offer niche rewards to better compete with established players.
Companies also reassessment of travel incentive programs… About 30% of remuneration for credit card holders did not redeem awards in 2020According to Bankrate, this leads some issuers to believe there is a market for more innovative rewards. Travel and nutritional implications of the pandemic only intensified this push… According to Visa, one day, fearless shoppers will be able to redeem hundreds of thousands of points for cards for a ticket to orbit.
Here are five reward proposals that you are likely to see in the coming years, according to the leaders of the card industry and fintech companies.
Reduce student loans
About 45 million Americans owe about $ 1.7 trillion. student loan debtMore and more lenders are considering reward programs that will allow cardholders to return cash to pay off loans.