Barclaycard next month plans to launch Barclaycard Freedom, a cash-based credit card rewards and loyalty program, through partnerships with more than 30,000 local and international retailers, the London-based card-issuing unit of Barclays Group PLC announced recently.
Holders of the issuer’s cards earn cash-back rewards when shopping at participating retailers, and they may redeem their funds at the point of sale. Barclaycard is automatically enrolling its credit card cardholders into the program. Barclaycard separately offers its Goldfish cardholders rewards through vouchers redeemable at over 25 brand names such as Marks & Spencers, WHSmith and Boots.
Barclaycard Freedom differs from other reward schemes in the United Kingdom because the rewards cardholders earn are recorded in pounds and cents, not through points or vouchers. Cardholders will earn 1% of the sale when they use their cards at participating retailers enrolled Barclaycard Freedom. They also will have access to various promotions and giveaways from the retailers, according to the issuer.
Cardholders making a purchase at a participating retailer may choose to use some or all of their reward funds toward that transaction or save them for future purchases, the release explains.
Before the launch, Barclaycard is sending all of its cardholders information explaining how the program works, a Barclaycard spokesperson tells PaymentsSource. Additionally, participating retailers will do in-store promotions, and the issuer will run a television, radio and online advertising campaign, the spokesperson notes.
Retailers will benefit from a loyalty program that includes more than 8 million cardholders. And on average, some 75,000 Barclaycard cardholders will be within five miles of participating retail stores, the spokesperson says. In turn, cardholders benefit because the rewards are provided in British currency instead of through vouchers and coupons, the spokesperson adds.
Participating retailers include Yo! Sushi, LA Fitness, Firebox.com, Goldsmiths and Nationwide Autocentres.
Swindon, England-based integrated energy supplier Npower also is among the organizations participating in Barclaycard Freedom. As a special promotion, Npower is providing Barclaycard Freedom customers the opportunity to grow their accounts by up to 160 pounds (US$244 or 182 euros). The energy company is offering a one-time incentive of 60 pounds for cardholders who transfer their gas and electricity to NPower before May 17.
“The partnership essentially means that Barclaycard cardholders who switch their gas and electricity supply to Npower are eligible for sign-up incentives, the spokesperson says. “They don’t even necessarily have to pay their bills with a Barclaycard credit card but only need to mention they are Barclaycard cardholders when switching.” Therefore, both new and existing customers will be able to earn a 100 pounds annually for both fuels through monthly direct debit payments
NPower was unable to provide a representative for an interview by PaymentsSource deadline.
