<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/marketing-cms/m2p-blog/2025/06/rewards-product-blog-1000.webp" alt="Drive Customer Loyalty &amp; Engagement: Unlock the Power of M2P’s Rewards Stack for Financial Institutions" title="" id="7lyawrf1p" width="100%" height="253">For years, financial institutions (FIs) have built trusted relationships with customers through solid products, bundled services, and traditional rewards. These models have driven familiarity and retention, and they continue to hold value. However, as customer expectations evolved in tandem with the industry, transactional engagement models began to lose relevance.&nbsp;&nbsp;Did you know?&nbsp;India’s loyalty market is expected to grow by 18.3% CAGR, reaching <a class="link" href="https://www.businesswire.com/news/home/20250213552919/en/India-Loyalty-Programs-Market-Intelligence-2025-Cross-Industry-and-Cross-Brand-Loyalty-Partnerships-Competitive-Landscape-Data-Analytics-for-Personalization---Future-Growth-Dynamics-to-2029---ResearchAndMarkets.com" target="_blank">US$3.58 billion by 2025</a>, driven by digital-first, AI-enhanced loyalty programs via mobile wallets and apps.&nbsp;Yes, today’s users interact across platforms and expect experiences that are fast, personal, and relevant. They want real-time engagement and benefits that reflect their lifestyle. With digital-first players gaining traction, the challenge is no longer just about retention; it keeps them actively engaged.&nbsp;Early adopters in the financial sector are already responding to this shift by evolving from static reward programs to intelligent engagement ecosystems that are&nbsp;<ul class="list-node" id="ly1kjb6vc"><li>Instant and intuitive</li></ul><ul class="list-node" id="x4yedphz8"><li>Contextual and customized</li></ul><ul class="list-node" id="k58urmdd6"><li>Integrated seamlessly across channels</li></ul>This evolution opens the door for FIs to reimagine how they deliver value, beyond products and transactions.&nbsp;That’s where M2P’s Rewards Stack makes a difference, enabling institutions to design personalized engagement experiences that build connections, influence behavior, and deliver long-term value.<h2 class="heading-node" id="rmmy0zg5c" style="text-align: left">Understanding Challenges Behind Rewards Program&nbsp;</h2>Designing a rewards program that truly engages customers isn't just about offering perks. It’s about delivering personalized, high-impact experiences consistently and at scale. Here are some of the key challenges financial institutions often face when implementing or scaling rewards program(s).<ul class="list-node" id="xf5p5t8ci"><li>Low Perceived Value by Users: Customers quickly disengage from programs that feel generic, overly complex, and/or out of reach. If rewards are difficult to earn, irrelevant to their lifestyle, or buried in fine print, users stop paying attention. A program must deliver tangible, lasting value; otherwise, it fades into the background.&nbsp;</li></ul><ul class="list-node" id="lt9jd7yw8"><li>Operational Complexity: Behind every rewards program is a maze of logic, workflows, and integrations. Mapping earnings rules, managing redemption processes, aligning with business objectives, and syncing with core banking systems can become overwhelming—especially for tech teams balancing competing priorities.&nbsp;</li></ul><ul class="list-node" id="ebdodkpxa"><li>Financial Overheads: Legacy rewards systems often come with heavy infrastructure costs, both upfront and ongoing. The need for constant updates, manual configurations, and partner onboarding adds layers of expense that erode ROI, particularly for smaller or mid-sized institutions trying to stay agile.&nbsp;</li></ul><ul class="list-node" id="iquxbj7me"><li>Engagement Fatigue: In a crowded market flooded with offers, customers are desensitized to the usual 'cashback’ and ‘bonus point’ messages. If the program lacks novelty, interactivity, or a sense of progress, users tune out. Keeping engagement fresh requires creativity, agility, and dynamic tooling.&nbsp;</li></ul><ul class="list-node" id="uc4cqohwk"><li>Evolving Expectations: What worked well even a year ago may now feel outdated. Customers expect more than transactional rewards: they look for contextual, real-time experiences that feel intuitive and rewarding. A static program simply can’t keep pace with changing behaviors and preferences.&nbsp;</li></ul><ul class="list-node" id="yd8qkhgnm"><li>Security &amp; Compliance Risks: As rewards programs become more personalized and data-intensive, they inevitably touch sensitive financial and behavioral information. Ensuring end-to-end security, managing consent, and staying compliant with local regulations isn’t just important; it’s mandatory.</li></ul>These challenges make one thing clear: building a modern rewards experience requires more than a one-size-fits-all solution. It calls for agility, intelligence, and customer-first design.<h2 class="heading-node" id="f1pcjxxq0" style="text-align: left">How M2P’s Rewards Stack Elevates Customer Engagement</h2>M2P’s Rewards Stack equips&nbsp;financial institutions (FIs) with a future-ready solution to design dynamic, data-led loyalty programs, engineered for today’s digital-first consumer.&nbsp;Omnichannel Engagement&nbsp;M2P enables unified reward experiences across debit, credit, preloaded cards, UPI, and CASA accounts, ensuring consistent value delivery at every customer touchpoint. From credit card transactions to wallet transfers, each interaction reinforces engagement and drives habitual usage.&nbsp;Modular Design &amp; Seamless Scalability&nbsp;Indian financial institutions, regardless of size, can launch quickly and scale with confidence. The platform’s modular architecture ensures easy configuration of rules, segmentation, and partner offers without needing to rewire existing systems. This agility helps institutions adapt to changing customer behaviors and campaign goals in real time.&nbsp;Intelligence at the Core&nbsp;Backed by real-time data and behavioral insights, institutions can craft personalized reward journeys that evolve with the customer. From automating tier upgrades to nudging milestone-based rewards, M2P empowers institutions to move beyond one-size-fits-all programs and toward relationship-led growth.&nbsp;Measurable Impact, Lower Complexity&nbsp;With streamlined operations, reduced overhead, and built-in governance, institutions can maximize ROI while minimizing manual effort. The result? A smarter, more secure, and more engaging way to reward India’s growing digital consumer base without straining infrastructure or compliance teams.<h2 class="heading-node" id="iil5ltsxj" style="text-align: left">Future of Engagement for Financial Institutions&nbsp;</h2>In a competitive, regulation-heavy, and increasingly digital Indian market, customer attention is both precious and fleeting. To stay relevant, financial institutions must go beyond static loyalty schemes and build reward ecosystems that are intelligent, adaptive, and customer-centric.M2P’s Rewards Stack offers that edge, enabling banks, NBFCs, and fintechs to turn everyday financial interactions into high-impact engagement moments. Whether you're looking to boost product adoption, drive retention, or deepen lifetime value, M2P provides the tools to design for scale, deliver with speed, and evolve with users.As digital journeys become the default and real-time expectations become the norm, now is the time to reimagine how you engage your customers, not just to retain them, but to truly build lasting relationships.Ready to evolve your customer engagement strategy?<a class="link" href="https://m2pfintech.com/contact-us/?utm_source=Blog%20Page&amp;utm_medium=Website&amp;utm_campaign=Rewards%20Blog" target="_blank">Get in touch</a> to explore what M2P’s Rewards Stack can do for you.<h2 class="heading-node" id="7t8t3bamf" style="text-align: left">Frequently Asked Questions&nbsp;</h2>Q1. How is M2P’s Rewards Stack different from traditional rewards platforms?A1. M2P's Rewards Stack is modular, real-time, and API-first, enabling seamless integration across cards, wallets, and digital banking products. This flexibility allows financial institutions to build, scale, and personalize engagement without overhauling existing systems.Q2. Can M2P’s Rewards Stack integrate with existing core banking systems?A2. Yes, M2P's Rewards Stack integrates seamlessly with existing infrastructure via its API-driven architecture, ensuring fast deployment and minimal disruption.Q3. How does a modern rewards engine improve customer retention?A3. By offering personalized, behavior-driven rewards, financial institutions can turn routine transactions into meaningful engagement moments, driving stronger emotional connections and increased satisfaction.Q4. How does M2P ensure data security and regulatory compliance?A4. M2P follows industry-best practices in data encryption, consent management, and regional compliance, securing every touchpoint and ensuring safe, compliant engagement.Q5. Can reward rules, campaigns, and partner offers be customized?A5. Yes, M2P's Rewards Stack provides complete control to define earn-and-burn logic, create targeted campaigns, and integrate with burn partners, allowing tailored rewards for customer segments, behaviors, or specific goals.Q6.&nbsp;How can I set up and manage the earn and burn logic for my rewards program?A6. Our platform is designed with a portal-first approach for the front end, enabling users to easily configure their own earn-and-burn logic. This empowers you to manage your rewards program independently, with minimal reliance on backend support, for greater convenience and efficiency.<a class="link fui-Link ___1idfs5o f3rmtva f1ewtqcl fyind8e f1k6fduh f1w7gpdv fk6fouc fjoy568 figsok6 f1hu3pq6 f11qmguv f19f4twv f1tyq0we f1g0x7ka fhxju0i f1qch9an f1cnd47f fqv5qza f1vmzxwi f1o700av f13mvf36 f1cmlufx f9n3di6 f1ids18y f1tx3yz7 f1deo86v f1eh06m1 f1iescvh ftqa4ok f2hkw1w fhgqx19 f1olyrje f1p93eir f1h8hb77 f1x7u7e9 f10aw75t fsle3fq f17ae5zn" href="https://m2pfintech.com/newsletter/" target="_blank" rel="noreferrer noopener">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights directly to your inbox.Follow us on&nbsp;<a class="link fui-Link ___1idfs5o f3rmtva f1ewtqcl fyind8e f1k6fduh f1w7gpdv fk6fouc fjoy568 figsok6 f1hu3pq6 f11qmguv f19f4twv f1tyq0we f1g0x7ka fhxju0i f1qch9an f1cnd47f fqv5qza f1vmzxwi f1o700av f13mvf36 f1cmlufx f9n3di6 f1ids18y f1tx3yz7 f1deo86v f1eh06m1 f1iescvh ftqa4ok f2hkw1w fhgqx19 f1olyrje f1p93eir f1h8hb77 f1x7u7e9 f10aw75t fsle3fq f17ae5zn" href="https://www.linkedin.com/company/m2pfintech/mycompany/" target="_blank" rel="noreferrer noopener">LinkedIn</a>&nbsp;and&nbsp;<a class="link fui-Link ___1idfs5o f3rmtva f1ewtqcl fyind8e f1k6fduh f1w7gpdv fk6fouc fjoy568 figsok6 f1hu3pq6 f11qmguv f19f4twv f1tyq0we f1g0x7ka fhxju0i f1qch9an f1cnd47f fqv5qza f1vmzxwi f1o700av f13mvf36 f1cmlufx f9n3di6 f1ids18y f1tx3yz7 f1deo86v f1eh06m1 f1iescvh ftqa4ok f2hkw1w fhgqx19 f1olyrje f1p93eir f1h8hb77 f1x7u7e9 f10aw75t fsle3fq f17ae5zn" href="https://twitter.com/m2pfintech" target="_blank" rel="noreferrer noopener">Twitter</a>&nbsp;for insightful fintech bytes curated for curious minds like you.

How Financial Institutions Can Elevate Customer Engagement with M2P’s Rewards Stack

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/05/banner1251-13.webp" alt="M2P Fintech" title="" id="hytqs9p1m" width="100%" height="356">We have come a long way in payments starting from the barter system, coins, currencies, paper cheques, and plastic cards to one-click payments, e-wallets, and <a class="link" href="https://m2pfintech.com/blog/blockchain-and-fintech-use-cases-and-applications/">cryptocurrencies</a>. Payment space keeps evolving at breakneck speed with new technologies that focus on bringing more convenience than ever before. Wallets and currencies are now out of action and considered obsolete by the millennials. Ever since the emergence of contactless payments, we are entirely freed from carrying traditional currencies everywhere. Technologies keep providing users with a better payment experience and NFC is one of them.Here is a short story that illustrates the brief above.One sunny morning, the grocery store’s aisle was my runway. I was excitedly grabbing all my favorite drinks and snacks for the ‘Netflix weekend’ scheduled with my friends. So, I head to check out with a happy face and a fully loaded cart. Unfortunately, that is when I found out that I forgot my wallet.So, in this scenario, what was the state of action?Scenario 1:&nbsp;I ran back home to get my wallet.Scenario 2: Got a favor from the shopkeeper to pay him back later.Scenario 3:&nbsp;Forgot all the fuss and used my phone to complete the payment.And nowadays, Scenario 3 is the hero everywhere as people have their cards and applications loaded in their smartphones to make payments anywhere anytime. NFC is one of many such technologies that is smoothing the way.<h2 class="heading-node" id="de52">What is NFC?</h2>The abbreviation stands for Near Field Communication. It is a wireless technology that initiates the communication between two nearby electronic devices to provide the most convenient experience to customers globally. NFC makes the transactions and digital content transfer simpler by connecting the electronic devices using electromagnetic fields.<blockquote class="block-node" id="1eqo4mvgr">NFC initiates the connection at a distance of 4cm or less and operates at the frequency of 13.56 MHz to make secure transfers.</blockquote><h2 class="heading-node" id="ed11">What are NFC payments?</h2>NFC payments are popular contactless payments that use NFC technology to initiate the connection between the reader and the NFC-enabled devices. You can pay using smart devices like mobiles, watches, or simply tapping debit/credit cards. It initiates secured, convenient, fast, encrypted, and touchless transactions at the point of sale.<h2 class="heading-node" id="c903">Mechanism and applications of NFC technology</h2><img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/05/Artboard-1-copy-11-3.webp" alt="M2P Fintech" title="" width="100%" height="284">NFC is a specialized branch out of RFID (Radio-Frequency Identification), a widely used technology for asset tracking, access control, attendee tracking, and much more.NFC creates a short-range communication using electromagnetic radio fields between two devices — one to transit and another to receive a signal, just like how you connect your Bluetooth device.The devices are differentiated into two- Passive and Active. Tags and other small transmitters are considered passive devices since they contain data that other devices can read, whereas active devices can read and transmit data. Such active devices are your smartphone that reads and helps share necessary data with other compatible devices if required.NFC is now introduced in a chip format as well. A beauty salon in Dubai recently introduced ‘chipped nails’ where a tiny chip is embedded in the nails and used to transfer information such as your digital business card or social media handles by just tapping your fingernails on the device. These services can expand to contactless payment systems too.NFC is used in three simple modes:<ul class="list-node" id="wqfacotvm"><li>Peer-to-peer mode:&nbsp;Two active NFC-enabled devices can initiate a connection to read or transmit information between each other. The Android Beam Technology uses this mode to transfer information and enable Bluetooth devices.</li><li>Reader/writer mode:&nbsp;We can read/write information from a passive device (contactless smart card or RFID tags) using an active device(smartphones/smartwatches).</li><li>Card emulation mode:&nbsp;Here, NFC acts as a contactless card, and we can use our smart devices in place of debit or credit cards to make digital payments.</li></ul><h2 class="heading-node" id="9a7f">How do NFC payments work?</h2>Contactless payments are now mushrooming with its wide range of options like EMV chip cards, mobile wallets, QR codes, and digital payment apps for the customers to experience ‘touchless and effortless’ check out and save time during their shopping spree. Moreover, they are a faster and secure mode of payments as there is no need to enter a PIN as it transfers the encrypted data to the NFC device instantaneously.NFC links the payment and reader devices wirelessly when they are closer to each other. Once connected, the payment can be initiated from the payer’s devices like smartphones and smartwatches through the installed payment applications like Google Pay, Samsung Pay, Apple Pay, etc. Then, the payer must just hover the device near the payment terminal, and NFC chips exchange encrypted data for completing the transaction within few seconds.<h2 class="heading-node" id="3528">How do merchants accept NFC payments?</h2><img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/05/Artboard-1-copy-9-2.webp" alt="M2P Fintech" title="" width="100%" height="284">All a merchant needs is an NFC-enabled reader to accept the payments, and that’s that. The shopper can make NFC payments through smartphones, smartwatches, and NFC-enabled accessories — wristbands, phone cases, or rings. These devices have a small chip that communicates with the merchant’s NFC reader via radio waves.The shoppers have now picked their goodies - CURTAINS UP!Now, the merchant ensures the NFC reader’s connection is good to go. The shoppers bring their NFC-enabled device closer, typically within two inches, or simply tap the cards (with contactless indicator displayed on them) on the reader. The shopper unlocks the app with the PIN/use biometrics and selects the card to complete the payment.<h2 class="heading-node" id="32bd">How are NFC and EMV connected?</h2>EMV and NFC are closely connected in changing the payment landscape to hit the big time with secure and encrypted payments. EMV stands for Europay, MasterCard, and Visa — named after the organizations found. EMV is the payment technology that enables transactions with chip-embedded cards, whereas NFC is the digital version of EMV offering contactless payments.EMV payment is carried through the small computer chip embedded in the debit and credit cards. This chip communicates with the POS when dipped to authenticate the transaction successfully. These highly secured payments can be made using EMV-enabled devices and readers. To avoid any fraudulent activity, for every EMV transaction, a unique transaction ID is created, which cannot be replicated. Additionally, the cardholder must enter a PIN/ sign the receipt to complete the transaction. NFC is the technology that facilitates EMV transactions digitally using smartphones giving the ease of not carrying a physical card.On the flip side, NFC payments are contactless and follow tap-and-go technology. As said, gestures like hover or tap are all you need to complete the transaction.EMV is a bit slower when compared to NFC in processing a transaction. So, most customers still prefer opting for NFC to save time in a big queue as it is also as secure as EMV. So, merchants can opt for readers that accept both NFC and EMV payments to provide customers with a seamless checkout offering the latest and stress-free payment options.<h2 class="heading-node" id="bb30">Benefits of NFC Payments</h2>These wireless innovations give a better user experience and prove anything can happen at our fingertips. NFC has changed how merchants and shoppers look at making payments. It has also made both merchants’ and shoppers’ life simpler.<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/05/Artboard-1-copy-10-1-1.webp" alt="M2P Fintech" title="" width="100%" height="284"><h3 class="heading-node" id="6ae9">(i) High-level security</h3>NFC payments are incredibly secure when compared with cash or magnetic-stripe cards. This is because the payment transactions are end-to-end encrypted, and details are highly secured.The customer can pay only at the POS terminal using their devices by providing the PIN/biometrics to unlock the payment screen. Another added security is that NFC payment readers can connect only one device at a time. This can prevent situations like customers paying for the wrong bill.<a class="link au nf" href="https://medium.com/m2p-yap-fintech/how-does-payment-tokenisation-work-d2f47186f718" rel="noopener">Tokenization</a>&nbsp;also plays a major role here. When people use apps like Apple Pay to carry their transactions, their sensitive payment credentials are masked with random strings of characters (tokens) to battle online and digital breaches. This new token is generated whenever you make a new transaction.<h3 class="heading-node" id="ce00">(ii) Comfort and convenience</h3>Shoppers don’t have to carry their wallets everywhere. They can simply use their smart devices for an easy checkout process. Another added functionality is to store multiple debit/credit cards in the payment apps and personalize the transaction according to their needs. Simple gestures like tap, wave, and hover are needed, and the payment is complete.<h3 class="heading-node" id="7719">(iii) Saves time at checkout</h3>Dealing with cash or using magnetic stripe cards consumes more time for both merchants and shoppers. Sometimes, shoppers skip purchasing in a few stores with a long queue in the POS terminal. To avoid such situations, merchants need to upgrade their POS terminal by providing a smooth experience to their customers, which increases their sales. So that, shoppers can save time in the checkout process when they opt for NFC payments. The less time it takes to complete the transaction, the more the customer is satisfied.<h3 class="heading-node" id="86b0">(iv) Touchless &amp; contactless</h3>The corona pandemic triggered the urge for contactless payments. This resulted in a steady increase rate of people opting for contactless payments. As a result, people are slowly opting for contactless payments that guard them against the spread of viruses when dealing with cash or card receipts.<h3 class="heading-node" id="8d5c">(v) Cost-efficient</h3>Since everyone’s best friends is their mobile phones in their everyday lives, NFC payments are cost-efficient for payee and payer sectors. So, the merchants must get an NFC reader and upgrade their payment terminal to seamlessly carry out the NFC payments. This even a small business merchant can afford to uplift their business. NFC reader is the better choice for merchants as it consumes less power too.<h2 class="heading-node" id="z3arn9s6q">NFC payments and its rapid evolution</h2>Contactless payments are omnipresent post the pandemic even though they were already a popular payment method before. Even exchanging money was considered a perilous task during this pandemic, but NFC has come to the rescue with its touchless feature. As a result, most people have upgraded to NFC payments helping businesses to drive their sales and ensure safety at the same time.The stats further strengthen the payment space with all positive predictions.<ul class="list-node" id="qlq2muew4"><li>The global market value of NFC payments is estimated to exceed $10.4 billion by 2026, with more than 14.5% CAGR from 2021 to 2026.</li><li>According to the report by Payments Journal, 30% of the consumers are making their payments contactless after the pandemic. Moreover, 70% who are new to this payment space wanted to continue making their payments contactless even after the pandemic abates.</li><li>The NFC’s market size is flourishing and is expected to touch $30 billion by 2023.</li></ul>The future of NFC payments, as predicted, will remain on the rise and will shape the payment space for the better over the next few years. Fintechs further mold it by offering innovative resources to provide the most convenient payment method for customers.One thing is sure, the NFC payments are here to stay, and the future holds more for payment space.<a class="link" href="https://m2pfintech.com/newsletter/">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox. Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

Tag: "Digital Transactions (2)"

M2P Fintech