Last month, Yub officially announced its spinoff from TrialPay, becoming the world’s first offline affiliate network.
Co-founder and CEO, Alex Rampell, sat down with Michael Patrick McSweeny of Pymnts.com to talk about Yub’s goal to bring merchants and mobile consumers closer together.
Yub Takes Mobile Loyalty Offline
By Michael Patrick McSweeney (@mpmcsweeney)
Credit and debit card loyalty programs have been around for ages in one form or another, but app developer Yub is pushing for a shifting of gears. By blurring the line between offline and online, Yub aims to provide a new way for merchants and affiliates to put rewards in the hands of increasingly mobile consumers.
Consumers can leverage Yub’s mobile app to generate rewards that can be instantly be redeemed via credit or debit card.
In an interview with PYMNTS.com, Yub co-founder Alex Rampell explained that one of the major challenges facing digital loyalty platforms is consumer trust. Many consumers are apprehensive about entering their sensitive information into a portal like a mobile phone that might be compromised later. As such, he believes the physical card could be the right form factor to encourage such activity.
“On a consumer side we spend a lot of time on the trust issue, making sure that the whole experience is foolproof and very easy to use. And we can give as much information as possible to consumers in terms of how their information is being used, how things work behind the scenes,” he said (Jump to: 4:10).
Yub’s offline focus begs the question of how the platform can compete in a landscape that is migrating toward mobile payments. When asked if Yub plans to shift gears as mobile payments adoption grows, Rampell countered by saying that mobile payments dovetail with what the company is trying to accomplish (Jump To: 6:50).
“From our perspective, right now, we’re seeing mobile [payments] as a very, very large source of the end-offers that are completed,” he said before adding that rather than “bucking the trend,” mobile payments fit nicely into Yub’s business model.
Looking ahead to 2014, Rampell sees merchants relying on an increasingly diverse set of tools and methods to reach out to consumers. Affiliate networks like Yub will play a powerful role in this process, Rampell predicts (Jump to 14:20).
To hear more about how Yub plans to compete in an increasingly crowded loyalty space, and Rampell’s predictions for 2014, listen to our full podcast.