Credit card companies attract consumers with rewards programs
October 24, 2013

Recent trends in the credit card industry suggest now is an opportune time for small and medium-sized businesses to invest in electronic payment systems.

According to Fox Business, an increasing number of credit card companies are offering short-term deals and promotions aimed at encouraging shoppers to utilize their cards for more everyday purchases. Consumers are especially attracted to these deals as current economic conditions have made it more difficult for Americans to spend money as freely as they normally do. As a result, financial institutions are working hard to offer attractive rewards programs that alleviate many of the paint points associated with today's struggling economy.

"The more you are thinking about your card, the more likely you are to use that card in other situations," Nicholas Felten, founder of the Personal Finance Digest blog, told Fox Business. "That's why (credit card companies) offer these targeted promotions."

Many of these strategies are producing the desired result, as well. A recent report from Reuters said the financial services organization American Express experienced a 9 percent increase in profit during Q3 2013. The company attributed a majority of that growth to a boost in credit card usage among affluent consumers. Similar trends are occurring in Canada, as well. Global News, a national news service, cited a recent report from American Express Canada that said 6 in 10 credit card users in the country opt to participate in rewards programs with their financial service providers.

As more consumers make purchases with credit cards, businesses in all industries can benefit from investing in payment integration services that make it easier to keep track of an increase in transaction data. Rather than relying on outdated systems to organize financial information, businesses can leverage new technology to improve back office processes.

Nexus: G-WEBCD1