Home » Cashless Payments Knowledge Hub » Remittance Apps With Cashback, Rewards & Loyalty Programs: What Should You Look For?
Sending money internationally is a regular commitment for many working and living in the UAE. Digital remittance services have made international transfers more convenient and remittance apps now offer programs that provide customers with additional benefits that add value to transactions.
Whether you’re transferring funds internationally to loved ones, paying utility bills, or shopping online, certain eligible transactions can earn points that turn into real benefits. But rewards aren’t the only thing to consider while choosing a remittance app. Transfer fees, exchange rates, and the amount your recipient receives remain important considerations.
Payit by First Abu Dhabi Bank (FAB) is a digital account that offers international money transfer services for eligible UAE residents. Through Payit Rewards, eligible customers can earn Reward Points on qualifying international money transfers and other eligible activities across the Payit ecosystem.
In this article, we look at how rewards work and how customers can assess the value they receive from the bank or company they already use to send money.
A remittance is a transfer of money sent from one person to another, most commonly used to describe funds sent by foreign workers to family members in their home countries. Remittance has been growing rapidly in the past few years and now represents the largest source of foreign income for many developing economies. [1]
Rewards are benefits offered by some remittance apps on eligible transactions or activities, subject to the applicable terms and conditions. These benefits are not the same as the remittance service itself.
A money transfer helps you send money internationally, while a rewards program may provide an additional benefit when you complete a qualifying transaction subject to its eligibility, terms and conditions.
Rewards take different forms depending on the provider and the program. Understanding the key differences makes it easier to identify the benefit each option offers, whether it suits your needs and what it’s actually worth.
A monetary benefit credited to the user after an eligible transaction or activity. It may be a fixed amount or percentage of the transaction depending on the offer.
Points earned through qualifying transactions or services that can be redeemed later at your convenience.
Programs that reward eligible users for continued use of the service or participation in qualifying activities. Depending on the provider, benefits may include shopping, travel bookings, utility bill payments, dining, and entertainment offers.
A cashback offer or a large number of reward points may look attractive, but the reward alone doesn’t tell you the overall value of a money transfer. When assessing a reward program, consider the benefit alongside the cost and outcome of the transaction itself.
For an international money transfer, exchange rates and applicable fees affect how it is received. A reward should always be considered alongside these factors.
Use the following checklist to evaluate the overall value of a transfer
What to assess | What to check |
Exchange rate | How much foreign currency will the recipient receive? |
Transfer fees | What fees apply to the transaction? |
Reward value | What is the actual redemption value of the points or cashback? |
Earning rules | Does the transfer qualify and are there any minimum amounts or other limits? |
Redemption options | Can you use the rewards for your benefit? |
Validity | When does the reward program expire? |
A program may be useful when it benefits you through the transactions you already make and the ones you can realistically use. Ideally, rewards should add value to transactions you already need to make rather than encourage unnecessary transactions simply to collect points.
Not all transactions qualify for a reward. Some apply minimum values, eligibility criteria, customer limits or have specific promotional periods.
Before relying on a reward system, it’s important to check that the conditions apply to your transaction. It is also important to differentiate between ongoing benefits and limited-time offers as promotional rewards may have conditions that don’t apply to regular programs.
Earning points is only one part of the process. Their practical value depends on how they can be redeemed.
Check the available options or any minimum redemption requirement and whether the points you receive can be exchanged for benefits you would consider using. It is also very important to understand when it expires and if there are any restrictions.
If you already use a financial service for international transfers, reviewing their rewards program can help you understand which benefits are available to you.
Common benefits offered by UAE remittance and money transfer services can include transfer fee waivers or discounts, promotional exchange rate benefits, referral bonuses, cashback offers and loyalty points.
Five factors that you should consider when evaluating a loyalty program include:
The earning process should be easy to understand. Check which transactions qualify, the amount of cashback you can earn, and whether there are customer limits or promotional periods.
A large point balance is only useful if you can redeem it for something that you want. Focus on available redemption options rather than the number of points offered.
A reward is only useful depending on what you can access and not how many points are being offered.
Some apps allow their customers to earn rewards through more than one service. If you already use the same app for different activities, this can help you get additional points. Check for qualifying services, as not every transaction or activity guarantees a reward.
Always check what happens after you earn your points. Are you able to see your balance easily? Where can you redeem it? Are there minimum redemption amounts? Do vouchers or points have a validity period?
These details will help you understand the practical value of a rewards program.
Understand whether the program rewards financial activity you already carry out or if it encourages unnecessary spending or transfers simply to qualify an offer.
Payit Rewards is a loyalty program that allows eligible customers to earn Reward Points through qualifying activities within the Payit ecosystem. These activities include eligible international transfers, daily card or wallet usage, keeping a wallet balance, and other financial activities subject to terms and conditions.
Payit provides rewards to customers across three categories:
Send Money: 100 Reward Points per qualifying international money transfer, subject to the applicable Payit Rewards terms.
Spend Money: Reward Points through eligible Payit services which can include bill payments and recharges, education fee payments, e-commerce, merchant payments, and other qualifying Payit payment services depending on the activity and the reward terms.
Borrow & Receive: 1,000 Reward Points per qualifying onDemand Payit request and 100 Reward Points per qualifying Payit Plus salary credit, subject to the applicable Rewards terms.
Payit Reward Points can be accessed through the Rewards section of the Payit app and redeemed for available rewards. The current redemption value is that 1,000 Reward Points can be redeemed for AED 1 in voucher value.
Available participating brands and redemptions often vary which include Amazon, Noon, talabat, Lulu, IKEA, Vox Cinemas, cleartrip, Calvin Klein, Skechers, Levi’s and much more, subject to availability and applicable Payit rewards terms.
Always check the Payit app to stay updated. Customers can refer to the Payit Rewards page and the Payit Rewards guide for further information.
Once you understand how your program works, a few simple habits can help you make informed decisions about the benefits available.
For UAE expats, choosing a remittance app still starts with the search for fundamentals such as security, convenience and reliable transfers.
For people who regularly send money internationally, rewards often add value to the financial service that they already use. Their value often depends on the earning conditions, redemption options and relevance of the benefits provided.
Assessing these details helps a person differentiate what they can gain realistically from the rewards they earn. With Payit eligible everyday transactions provide you with additional ways to earn within the same financial system.
Make your everyday transactions more rewarding with Payit.
*Reward Points, earning rates, redemption values, participating merchants and qualifying activities are subject to eligibility criteria and the applicable Payit Rewards Terms & Conditions and may change from time to time.
Yes. Qualifying international transfers can earn rewards, depending on the provider. Payit offers Reward Points on eligible transfers.
Reward Points are earned on qualifying transactions and can be redeemed for available rewards through the Payit app.
Eligible customers can earn points through qualifying Send, Spend and Borrow & Receive activities on Payit.
Points can be redeemed for available vouchers and other rewards through the Payit app subject to availability.
Rewards are one factor. Also compare exchange rates, fees, security and reliability.
Point validity depends on the applicable Rewards terms.
Reward Points are earned on qualifying international money transfers, subject to the applicable Payit Rewards terms.
Ref:
[1].
https://www.imf.org/external/pubs/ft/fandd/basics/pdf/ratha-remittances.pd