Card vs. Account Linking and Positive Incrementality: Insights from Finfare Connect

In a recent episode of “The Gift Club” podcast, Sina Saidinayer, VP of Global Revenue at Finfare, shared his expertise on the differences between card- and account-linked data, and how these concepts drive incremental value and loyalty.

Through a detailed discussion with Hadie Perkas, CEO and Founder of The Gift Club, Saidinayer illuminated the nuances of these financial mechanisms and the significant impact they have on consumer behavior and merchant success.

Card linking involves connecting a payment card to a program, allowing transaction data to be tracked and utilized from that card. This method leverages the unique merchant IDs associated with major card networks like Visa®, Mastercard®, and American Express®. Saidinayer explained that card-linked programs depend on capturing shopping behavior from linked cards, making it essential for the right merchant and card to be connected from the outset.

On the other hand, account linking uses open banking frameworks (such as PSD2 in the UK or Plaid in the US) to connect multiple bank accounts to a program. This approach offers a comprehensive view of a user’s financial activities, including historical transaction data so publishers and merchants can offer highly personalized and relevant offers to their customers.

“Account linking provides a broader insight into a customer’s spending habits, making it a powerful tool for loyalty programs by offering a deeper understanding of their overall financial behavior.”

– Sina Saidinayer

Saidinayer emphasized the concept of incrementality, a critical factor for merchants aiming to achieve genuine revenue growth. Incrementality measures whether marketing efforts bring in new customers or merely capture existing ones. He noted that card linking often falls short of demonstrating true incrementality because it only captures data from specific cards, missing out on a complete view of customer spending across all accounts..

Account linking, however, offers a holistic perspective by tracking all transactions across multiple accounts. This comprehensive data enables merchants to understand their share of wallet—the portion of a customer’s total spending that they capture. For example, a coffee shop can analyze where its customers are spending money and tailor offers to increase its share of wallet.

While the benefits of account linking are clear, Saidinayer acknowledged the challenges in convincing customers to link their bank accounts. The primary hurdle is the perceived intrusiveness of sharing banking information. To address this, Saidinayer stressed the importance of demonstrating tangible value to customers. By showing how linking accounts can lead to significant savings and personalized offers and rewards, companies can overcome resistance and encourage adoption.

Despite the increasing popularity of open banking, many consumers are reluctant to link their accounts because they don’t understand its true advantages. Saidinayer suggested that better communication and marketing strategies are essential to highlight the benefits, such as enhanced cash back rates and a superior user experience.

“Instant value exchange drives incremental value for the customer and the merchants, targeting offers and rewards to a truly new or lapsed customer rather than discounting for discounting sake”

– Sina Saidinayer

Saidinayer outlined three crucial elements for launching a successful payment link program:

1. Users: Building a substantial user base is fundamental.
2. Offers: Providing attractive and relevant offers is critical to engage users.
3. Marketing: Effective marketing ensures that the program reaches its target audience and clearly communicates the value proposition.

He underscored that even the best rewards and offers are futile without proper marketing. Tailored messaging, timing, and delivery are essential to resonate with users and drive engagement.

As a one-stop shop, Finfare integrates transaction data, affiliate offers, payment-linked offers, and instant cash back options, making it easier for companies to set up robust rewards programs quickly using white label or API. With over 10,000 advertisers, 35 publishers, and 15 million users, the expertise of Finfare’s team allows publishers and advertisers to use data-driven strategies that drive incremental value, personalized rewards, and customer loyalty.

Connect is a global engagement solution that utilizes open banking data to provide personalized merchant-funded offers to consumers, resulting in increased engagement and revenue. Here’s how everyone benefits:

• Publishers can engage existing audiences with personalized, relevant offers, driving retention and incremental revenue. 
• Advertisers gain new marketing channels for their products and services, attracting new customers with no-risk performance-based marketing.
• Customers get access to personalized offers relevant to their shopping habits and brand preferences while earning cash back on everyday shopping.

“Customers are the biggest untapped market. We are flooded by choice in the UK.  But sharing our data means we can offer great cash back rates and better experiences”

– Sina Saidinayer

By leveraging comprehensive transaction data and focusing on true incrementality, businesses can create more effective and engaging rewards programs to increase customer engagement, retention, and revenue.

Education and clear communication are essential to overcoming barriers and unlocking the full benefits of account linking for both merchants and consumers. Watch the podcast to gain first-hand insights from Sina Saidinayer, VP of Global Revenue at Finfare.