From Points To Payments: Transforming Loyalty Programs For The Digital Age

The limited accessibility and usability of reward points is a global issue. The points generally expire and for point issuer, the programs are not able to drive engagement as it should. Customers and merchants struggle to reap the full benefits of these programs.

Having identified this gap Amit Koshal (Co-founder & CEO), Rishi Batra (Co-founder & COO) and Amit Sharma (Co-founder & CTO) founded Twid in 2020- a rewards-based payment network turning reward points into a fully fungible currency that can be used for anything, anywhere.

1. Twid's approach of turning reward points into a fully fungible currency is quite innovative. Could you elaborate on how this process works and its significance in the rewards points ecosystem?

At Twid, we are spearheading the development of a payment network of non-fiat currencies in India. Twid is a network effect platform that combines multiple loyalty/reward points across issuers such as banks, fintech firms, and retail/e-commerce brands. It allows consumers to pay online with a 'one-click-checkout' experience using their reward points and soon will be available in Offline space. Once on a merchant's check out page, customers have the option to 'Pay with Rewards' and have the flexibility to choose which loyalty programme they'd like to redeem their points for their purchase.

Further, they will be able to use a combination of points and digital currency, such as their credit card, netbanking, or UPI, to complete their purchase. It connects reward point issuers with large merchant networks to enable redeeming points as a form of payment.

With access to 1+ lakh merchants and a substantial rewards point pool of approximately $2.2 billion, Twid uses the customers’ phone numbers as unique identifiers to identify the reward points available in their kitty.

Twid is also assisting issuers and merchants with valuable insights to effectively engage with their customers while observing consumer behaviour in the reward redemption process.

2. With affiliations in the banking and retail sectors, Twid seems to have access to a substantial pool of reward points. How do these partnerships contribute to Twid's growth and the value it offers to consumers?

Twid has affiliations with leading institutions like Yes Bank, IndusInd Bank, Supercoin, Intermiles, Payback and more. In the last two years, Twid's customer share of wallet has witnessed a massive jump from 0.5% to 8%. Our affiliations offer our users a wider selection of rewards, from banks to brands and commerce. This makes it easier for users to track and redeem points, getting more value. By providing a valuable service, Twid attracts users and benefits partner businesses through increased customer engagement and spending.

3. Reward payments have the potential to revolutionise loyalty programs. Can you share examples of how businesses have leveraged Twid's platform to create effective and efficient loyalty programs that drive customer engagement and retention?

With a user base access exceeding 150 million users, Twid has a vast community utilising its reward earn and burn facilities.

As the gap is shrinking in the uniqueness of products and services offered by multiple businesses, loyalty programmes are emerging as the deciding factor for customers when making purchase decisions. Merchant partners of Twid across sectors — groceries, travel, entertainment, hyperlocal and e-commerce — have seen an average of 5% increase in customer conversions, 20% increase in average order value and over 15% savings of merchant marketing spends since integrating “Pay with Rewards” at the checkout page.

4. Data analytics plays a crucial role in providing personalised experiences to consumers. How does Twid utilise data analytics to enhance the user experience and facilitate customer acquisition for merchants on the platform?

With Twid’s in-house encrypted and highly secured data insights engine, Twid helps customers make informed decisions on savings, merchant choices, accelerated earnings and right choice of payment instruments.

5. What are some of the challenges Twid faces in the rewards points industry, and how does the company plan to overcome these challenges?

As with any innovative platform, Twid faces certain challenges in the rewards points industry.
Consumers today are bombarded with loyalty programs, and their expectations are constantly evolving. They crave not just points, but a seamless and rewarding experience. Additionally, the sheer number of programs and varying point structures can be overwhelming.

Twid addresses this by offering a seamless user-friendly platform that simplifies reward management and usage. We consolidate points from various programs, provide clear redemption options, and leverage data to personalise the experience without users to remember their enrolment number, point balance, point value and so on.