A fintech start-up backed by former American Express and Velocity Frequent Flyer executives is promising to democratise loyalty by launching what it claims is Australia’s first credit card- and bank-agnostic rewards program.
Loyalty Republic is launching an app that will enable consumers to earn one reward point for every $1 they spend when they use any debit card anywhere, including retailers, restaurants and airlines, and bonus points when they shop with the company’s partners.
The Melbourne-based start-up has signed up more than 150 online and bricks and mortar retailers and partners including Boost Mobile, Adairs, T2, Windsor Smith, buy now pay later player Bundll, womenswear retailer PAS Group, The Athletes Foot, Ally Fashion and LuluLemon.
Loyalty Republic was co-founded by former American Express executive Tom Ingham and former MOJO Marketing and advertising director Katrina Gravelle, who are the majority shareholders. The board includes former Velocity Frequent Flyer CEO Neil Thompson and former Publicis and Ogilvy CEO Andrew Baxter.
“We’re democratising loyalty – we want to make it accessible and fair for all,” said Ms Gravelle, co-managing director.
“At the moment, consumers can earn points on their credit card but you can’t do that on your debit card,” she said, “so we want to promote to consumers you don’t need credit to start earning points.”
Australians spent about $418 billion on debit cards in the 12 months to July 2021, but it is estimated that 75 per cent of this spending was not rewarded.
Loyalty Republic challenges existing models by not limiting direct earn rewards to credit cards, retailers or airlines and by giving consumers freedom of choice over the cards they use and the rewards they collect.
Siloed rewards landscape
“17.5 million Australians are enrolled in at least one loyalty program, but less than half of them actively participate,” said Ms Gravelle.
“Our aim is to disrupt the siloed rewards landscape by offering greater value, and open up loyalty and choice to consumers and participating partners – more real-time rewards, more often, for more consumers, and freedom and flexibility that makes it accessible for large, medium and small businesses,” she said.
Rewards points are redeemable against more than 3500 products and 250 gift cards available through the Loyalty Republic e-mall. Points are funded from commissions Loyalty Republic makes by driving customers and sales to its retail partners’ stores and sites.
Loyalty Republic will also reward consumers to shop locally. The app will use location-based technology to offer bonus points to encourage consumers to shop with local businesses and motivate them to visit in-store, rather than using delivery services.
