Mastercard partners with Swoo to offer crypto cashback services

Global card issuer Mastercard has partnered with Netherlands-based mobile wallet Swoo to offer crypto cashback on everyday purchases

Global card issuer Mastercard has partnered with Netherlands-based mobile wallet Swoo to offer crypto cashback on everyday purchases. In essence, Swoo joined forces with Mastercard to innovate loyalty programmes for banks, merchants, and payment service providers.

Swoo introduces an alternative method of crypto cashback through Swoo Loyalty Tokens for every contactless payment made via the app using digitised Mastercard cards. It's worth noting that Swoo does not issue its own card but instead facilitates mobile contactless payments with existing bank cards while providing crypto rewards. According to the official press release, this collaboration reflects the growing interest of major financial players and retailers in integrating crypto assets.

Such programmes aim to reboot loyalty programs, which have faced challenges such as low client retention and redemption rates, delays, and high implementation costs over the past decade. For customers, this initiative offers a user-friendly introduction to crypto assets without the need for significant investment commitment. The partnership builds upon the success of a previous pilot campaign named 'Super Tokenback with Mastercard.' During the three-week campaign, users received 5% Tokenback (crypto cashback) on all Mastercard purchases made through Swoo Pay.

The campaign saw over 17,000 participants conduct more than 128,000 transactions, resulting in an increase in card spend and the introduction of new consumers to crypto-backed rewards. How does the cashback system work? Once users earn Tokenback in Swoo Loyalty Tokens, they can either exchange their rewards for popular cryptocurrencies like USDT or BTC within the Swoo app or convert them to fiat money through partnering services. As Swoo continues to develop its crypto rewards platform, it will support more Web3 features, enhancing the utility and value of loyalty tokens within the ecosystem.

This programme holds particular significance for individuals traditionally underserved by payment services, such as those in emerging markets and Android phone users. In the official press release, representatives from Swoo talked about Swoo Loyalty Tokens and how they seamlessly integrate crypto into mainstream markets, complying with local regulations and simplifying the launch and scalability of marketing campaigns to attract new users. In turn, officials from Mastercard talked about the company's endeavours to constantly expand the possibilities of using digital payment instruments to make payments as convenient, technologically advanced, and safe as possible.

They also talked about Swoo Pay and how it addresses issues with Tokenized payments for Android device users, making them more accessible. .

Feb 20, 2024 15:20
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