Get Rewarded for Shopping Small: How Credit Cards Support Small Business
(BPT) - Whether it’s your local ice cream shop, neighborhood dry cleaners or go-to family-owned grocery store, mom-and-pop shops bring communities together. These businesses foster connections between residents and merchants, provide a more personalized shopping experience and support the local economy.
So how can these local businesses provide the benefits we know and love? The answer might surprise you: credit card rewards programs.
Credit card rewards allow consumers to earn points for their purchases. One example is through cash back, where consumers can earn cash based on their credit card spending. But if cash back isn’t for you, there are other rewards you can earn, like points toward travel, hotels, groceries or gas. With credit card rewards, the possibilities are endless.
The best part about credit card rewards is that they don’t cater to one specific consumer group. In fact, consumers of all income levels use and benefit from credit card rewards every day. According to a 2021 survey from Phoenix Marketing International, 98% of credit cardholders owned a rewards card, including 82% of cardholders earning less than $20,000 annually. And luckily, credit card rewards are a win-win for both consumers and local businesses.
Credit card rewards programs are essential to the success of mom-and-pop shops. They keep community institutions afloat and allow these stores to adopt the latest technological advancements. These programs’ amazing benefits incentivize consumer spending and generate additional revenue. It’s called the ticket lift phenomenon — the availability of credit and rewards actually increases consumers’ spending ability, benefiting local businesses by increasing cash flow. This, in turn, allows companies to invest in themselves, providing shoppers with innovative technology, efficient transactions and an overall better customer experience.
But the benefits don’t stop there. Credit card rewards programs also fuel payment innovation for small businesses. Mom-and-pop shops are able to integrate new technologies like contactless payments, mobile wallets and tap-to-pay systems, making the shopping experience smoother than ever before. And with these advanced payment systems, small businesses can more easily compete technologically with their larger, wealthier corporate competitors. Small business owners can draw customers with the same convenient tools offered by the likes of Amazon and Walmart — all while resting assured that their customers’ credit transactions are safeguarded by top-tier fraud protection.
And believe it or not, credit card rewards make this all possible. By bolstering consumer credit spending, rewards programs help fund the very mechanisms that allow the industry to offer its myriad benefits. Data security, consumer privacy protections and seamless transactions all result from a healthy and vibrant credit card economy. And with credit card rewards, everyone wins. Consumers earn the points and cash back they love, while small businesses receive the latest payments and security technology needed to compete in the modern marketplace.
Indeed, credit card rewards benefit not only consumers but also small businesses and the communities they serve. These programs help keep economies humming, shops thriving and locales blossoming. They’re truly a victory for the little guy. So, what are you waiting for? When you’re ready to make a purchase, get rewarded for shopping small.