Earlier this week, Dosh, a US-based rewards platform, announced the launch of “Powered by Dosh,” a white-label solution that enables financial service companies to offer personalized automatic, instant, and frictionless card-linked cashback to their users. On the surface, what seems like a simple rewards tool, could have the potential to change the way brands advertise to consumers.
Is it a rewards platform or an advertising platform, the answer, according to Ryan Wuerch, CEO and founder of Dosh, is both. As he looks towards the next 10 years, all he sees is potential. The company is focused on Reimagining how we connect with Millennial and Gen Z audiences has never been more relevant than it is today, especially during this time of shifting consumer behavior.
Across a long list of digital banks, many lack strong differentiation. ‘Powered by Dosh’ provides a new platform with the potential to make them stand out. Venmo will be the first payment platform to roll out Powered by Dosh to its customers. The addition expands the platform’s existing cash back program and connects users to the largest network of brands and retailers. Jelli will be the first digital bank, followed by “several” other financial services companies to follow in the fall.
“Traditional banks, digital banks, and payments platforms are in a heated competition to stay top of wallet for consumers,” says Wuerch “We designed Powered by Dosh to be automatic, seamless and frictionless for consumers…the idea is to let them do nothing and still earn rewards.”
The new solution is delivered through a software development kit and includes a web application and personalization tool. Integration is designed to be simple, so financial institutions can easily offer, card-linked cash back experiences to their customers and compete for a larger share of the individual’s spending.
Powered by Dosh enables brands to shift advertising dollars away from ineffective forms of traditional and digital media, to cashback rewards, a transactional-based channel that’s proven to attract new customers both in-store and online. It also increases purchase frequency and average order value. Cashback also helps brands gain a deeper understanding of their most loyal customers and make decisions based on data at the individual level.
“This is the advertising platform that the industry has been waiting for,” says Wuerch. “As more and more CMOs are being charged with showing attribution, we believe the next phase in advertising will be transaction-based. Simply browsing products online does not indicate that a consumer is going to make a purchase.”
A recent study conducted by Dosh and The Center for Generational Kinetics found that consumers are increasingly looking for ways to save money and get rewarded for their spending. Additional findings include:
- Rewards incentivize shopping: 80% of people report they’d visit a store they hadn’t tried before if alerted about direct cashback offers.
- Instant gratification triggers greater spend: 74% of Gen Z and 70% of Millennials will spend more money if they know they will instantly receive 5% cashback at checkout.
- Rewards trigger an emotional response: 85% of Americans report feeling “Awesome” or “Good” about themselves after being notified they’ve earned cashback.
“Since launch, the demand for the Powered by Dosh technology from financial services companies, both big and small, has been incredible. We will announce new partners over the coming months, which will significantly expand our user base,” says Wuerch.
While other rewards platforms like Bumped and Bits of Stock are offering rewards in the form of fractional shares of stock or Pei and Lolli in bitcoin, Dosh is betting on cash as the reward that will enable the platform to excel against the competition.
“I don’t believe in points, because no one knows what they mean in simple dollars and cents. Through our research, we confirmed that cash is the greatest treat known to man,” said Wuerch. “The reward comes with what you do with that cash, invest, save or spend it, cash is pure because people know what it means,” says Wuerch.