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Cashback, a concept popular in other countries, is a new trend in Brazil that allows you to receive money back while shopping.
Discounts are often the primary attraction for shoppers, but it is important to note that cashback is not the same as a discount.
Cashback programs for traditional programs differ in that the cashback benefit is typically received as bonuses or cash in the customer’s current account, without an expiration date as seen in miles and points systems.
E-commerce retailers have chosen to utilize a money-back model instead of immediate discounts to incentivize customers to make purchases with their debit or credit cards and receive extra benefits.
Cashback can serve as a tool to advance financial independence, and there are apps available to assist in earning cash rewards.
What does cashback mean?
When you make a purchase using a card with cashback features or on a website with similar programs, you receive a portion of the money you spent returned to you, known as cashback.
Cashback involves getting back a portion of your money following a purchase, typically for online shopping but occasionally for in-store purchases as well.
Many e-commerce companies are embracing the practice of offering refunds due to increased customer demand, rising market competition, and financial influences.
Discount coupons and cashback generated over R $ 1.5 billion in e-commerce during the initial six months of 2020 due to the quarantine resulting from the new coronavirus pandemic, as per Cuponomia offer portal.
The cashback is a convenient, simple, and easily expandable way to advertise offers and provide value to customers.
How does the cashback system operate?
The cashback system operates by giving you a percentage of your purchases back as a refund. For instance, if you buy a R$2,000 smartphone with a credit card that offers a 1% cashback rate, you will receive R$20 back.
At first, the amount may not appear significant, but it is beneficial to consider that every purchase results in a return, or the funds can serve as a reserve for unexpected expenses.
Why are banks and brands shifting from instant discounts to cashback offers?
Offering immediate discounts can be more costly than providing cashback options. When a bank offers a direct discount, the customer must pay the reduced amount to the retailer during the purchase. In contrast, if the bank offers cashback, the money is credited to the customer’s account at a later date.
Banks provide cash back to customers by immediately reimbursing the retailer while holding onto the customers’ funds for a set period, during which they promise to credit the refund to the bank account. Meanwhile, the banks invest these funds to earn additional income.
Is purchasing items on cashback websites secure?
To purchase cashback sites securely, follow these steps:
- Verify the company’s reliability by checking for any negative reviews on Reclame Here if it is unfamiliar to you.
- Please make sure to carefully review the rules and terms of use.
- Pay attention to the difference in value and discounts when making a purchase.
More than half of respondents in loyalty programs worldwide consider discounts as one of the most cherished benefits, with monetary rewards such as money-back or refunds following closely behind, as per a Nielsen Global survey.
Some popular e-commerce platforms are already included in cashback programs, such as American Stores, Submarino, Amazon, Ifood, Uber, Rappi, Decolar, Booking, and other well-known brands.
Explore the top 5 cashback applications.
Some additional popular cashback apps are available for both Android and iPhone (iOS) to assist you in saving money.
1. Meliuz is a cashback platform.
Méliuz, the biggest cashback company in Brazil, partners with a wide range of online and physical stores across the country to provide cashback rewards on purchases of specific products.
PicPay 2.
PicPay is a digital payment platform that enables users to conduct various financial transactions, including online banking, bill payments, mobile credit purchases, and money transfers, with the added benefit of cashback rewards.
3. Love in the digital age
Ame digital is an app that provides cashback rewards for purchases made at select stores. Users receive a percentage of their payment back, which can be used for transactions within the app. Additionally, users can make payments and transfers between accounts by using QR codes.
C6 Bank is described in the text.
C6 Bank is an online bank that offers a unique feature where credit card expenditures are converted into points called C6 Bank Atoms. These points can be used to purchase items from the C6 Shop or exchanged for cashback, putting money back into your account.
How was the concept of cashback introduced?
Cashback originated from the British supermarket Tesco’s initiative to minimize on-site cash storage, reducing vulnerability to theft and bank processing fees.
Once implemented, the refund option gained widespread popularity with customers and was promptly embraced by other major retailers.
The initial business in Brazil to introduce cashback was Méliuz in 2011. Since then, many other companies in various cities across the country have also embraced the cashback concept.
Is cashback truly beneficial?
Cashback is primarily provided by credit cards, with potential additional charges like monthly fees and late payment fees for customers who are unable to pay their credit card bills every month.
Different cashback programs offer refunds at various participating stores, so it’s crucial to choose a program that aligns with your spending preferences.
Benefits of receiving cashback
Statistics indicate that 79% of marketers employ affiliate marketing to boost sales and drive conversions.
Cashback websites provide attractive incentives and advantageous deals to customers, increasing the likelihood of converting potential buyers as they are directed to retailers through these platforms.
The cashback program websites lead customers to shopping sites for purchases and payments. By guiding consumers to the online stores, the cashback service earns a commission and shares a portion of it with the buyer.
The shopkeeper can easily manage these payments by sending money to a single company instead of numerous individuals, providing convenience for both the shopkeeper and the consumer who can enjoy cashback rewards while shopping.
The cashback program can assist in saving money by giving back a portion of the payment to the customer, enabling them to invest in new endeavors for future financial stability.
Cashback has become a beneficial tool for individuals looking to cultivate new financial and investment habits, prompting them to conduct more research before making purchases and become more discerning with the offers they encounter, leading to improved money management.
Why do businesses provide cashback offers?
Many individuals doubt the rationale behind cashback offers, wondering why businesses provide money back. Loyalty programs play a significant role in retaining customers in the retail sector. Therefore, companies find it beneficial to implement cashback programs to foster loyalty and facilitate cost-effective transactions.
Offering cashback is a great strategy to increase brand visibility and attract customers away from competitors.
Cashback refers to receiving money back into your possession.
The cashback program has become popular in Brazil and has been advantageous for both consumers and businesses.
Companies can benefit by boosting sales, growing their distribution channels, and rewarding customers, which can be part of a loyalty initiative.
Consumers can easily earn and save money with convenience and safety.
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