There’s a cafe here with a stored value card that doubles as their points card and it’s a really smart implementation. Underlying business objective: sell more coffee (which has arbitrarily high margins). You load the card with cash, and they give you a bonus for loading more.
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e.g. If you give them 5,000 yen ($50) then you get 10% of that as points plus a free drink coupon. Tiers below at 2,000/etc; cash value only below that.
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This encourages you to keep your coffee spend here, as opposed to Starbucks, and gives the cafe a negative-cost source of working capital. (Plus if you don’t come back in a year after your last use, breakage.)
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Also lets them outcompete the CC companies; they can offer 5% point rewards (costs them nothing) as opposed to banks offering 1% (costs them 2% if customer chooses to purchase with CC).
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Replying to @patio11
this is a clever way to dodge merchant agreement rules against fee passthrough
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Replying to @alicemazzy @patio11
though I guess it's really just playing the rewards program card game from the other side
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oh nm that's what you meant by the 1% lol
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