SEATTLE—Will a move by Amazon force more issuers to consider debit rewards?
In the face of a credit cards rewards battle that has heated up among the major card issuers, a topic CUToday.info has reported on extensively, Amazon recently announced a new rewards program targeting Prime members who prefer to pay for their shopping with debit cards.
The debit card reward program will earn shoppers 2% cash back, compared with 5% cash back for Prime customers paying with credit cards. The new reward program also has the potential to encourage Prime members to spend more on Amazon purchases, Market Realist explained.
“Prime members usually spend significantly more on Amazon shopping than do customers who are not part of the loyalty program. The move to extend rewards to debit card holders could be viewed as another step in Amazon's efforts to attract more budget conscious consumers to its loyalty program. Considering Prime customers' significant spending, the loyalty program is vital to Amazon's retail success. It's no wonder the company is adding perks to Prime to make it more appealing to shoppers,” Market Realist said.
According to Consumer Intelligence Research Partners, the average Prime subscriber spends $1,300 annually on Amazon shopping, compared with non-Prime shoppers’ $700, Market Realist reported.