In a crowded market of digital-only banks and bank-type platforms, cash back rewards are seen as a way to keep customers engaged. This week, two prominent fintechs – digital banking startup N26’s U.S. branch and banking and investing platform Ellevest – rolled out cash back reward offerings powered by payment technology company Dosh.

Why should we care?
As customers stay home during the pandemic, points or travel-related rewards are no longer as compelling. Fintechs say cash back rewards give customers opportunities to spend the rewards the way they want instead of conforming to a points program. Dosh, a rewards platform with a toolset that allows brands to launch cash back programs in a matter of weeks – offers fintechs capabilities to personalize and curate cash back offerings depending on the target group of customers. For example, Ellevest, which first launched cash back rewards last year, this week rolled out a new rewards program supporting women-led businesses, a capability enabled by Dosh. It’s yet to be seen whether these offerings will result in high levels of customer acquisition or retention, but they’re important ways these companies can encourage their customers to transact and stay within their ecosystems.