UMB Bank, Kansas City, Mo., was looking for an innovative credit card product that would set the bank apart from other issuers and would spur continuing loyalty among cardholders.
Numerous credit cards offer airline miles, others offer cash back, and there is a smattering of other of reward offerings. But with most the consumers need to change among cards to change their rewards.
”Differentiation is a real challenge in the marketplace,” says George Schmelzel, UMB senior vice president. So the solution was to find a provider that could provide the underlying technology to enable a cardholder to have a variety of reward choices.
The bank didn’t have to look far, Schmelzel said. Pittsburgh, Pa.-based Dynamics Inc. had won several financial industry awards for its technology that could enable a programmable card using magnetic stripe technology. The bank and the technology firm started working on a card and rewards offering that would have “as much interest for a holder at age 58 as at age 28,” Schmezlel said. “The rewards evolve with the customer. The killer app is choice. Consumers want something that will meet their needs today. This is disruptive, game-changing technology.”
The underlying Dynamics technology enables the magnetic stripe card to have much of the same functionality of a chip-based card or mobile payment device, according to Schmelzel.
UMB recently rolled out the Dynamic ePlates card to take advantage of the boost in consumer spending during the holiday shopping season.
The user goes to the online site to choose which “experience” he or she wants for each of the two buttons near the top of the card. The card is designed to be as thin, flexible, and durable as a traditional payment card and last over three years on a single battery charge. The device includes a number of peripheral management circuits that are directed to power management, timing, and control.
The experience button lights up when selected, a feature that creates a buzz of its own among users and merchants alike, according to Schmelzel.
The cardholder can go online to change the experiences. For example, Schmelzel’s experiences are an African safari and Toys for Tots. He’s using the latter during the holiday shopping season. There are more than 30 experiences today, and Schmelzel expects that number to grow to triple digits within a year as more merchants become part of the program. Current experiences range from Salsa of the Month to digital Upper Deck trading cards.
Some of the participating merchants also provide additional bonuses. Every time Schmelzel chooses the African safari experience, he’s entered in a sweepstakes to win the trip. After reaching a certain level with Upper Deck rewards, a cardholder receives unique sports memorabilia.
“This card was developed to give companies a way to drive stronger engagement with consumers, essentially making them brand loyalists,” Schmelzel adds. “And since the experience the company offers will be exclusive to the ePlate card, cardholders gain something from the company’s brand that they can’t find anywhere else.”
“ePlate creates a channel for a company to offer customers a unique experience or reward,” said Jeff Mullens, Dynamics, Inc. CEO.