laguna_greg
New member
My idea is a credit card that combines traditional payment functionalities with a premium bond-style incentive system. Users can make everyday purchases with this card, akin to using an American Express card, but with an added twist: for every pound spent, they receive an entry into a daily prize draw. My aim is to make daily spending more exciting by offering the chance to win monetary rewards, appealing to individuals who appreciate the utility of credit cards and the thrill of lotteries. With this card, I hope it steers people away from scratch cards and lotteries and just use this as their gambling “thrill” instead of wasting money.
Numbers:
For every £1 spent on the card, you’d be entered into a draw to win 20% of all that days transaction fees.
We would charge merchants a flat 5p rate for each transaction and then 3%. If we did £5 million in transaction value across 1 million transactions then we would take £170k in revenue for that day (don’t charge the 3% on first £1) With this 170k, we would give 20% to that daily prize pool, giving someone the opportunity of winning £34k.
If you spent £20 on that day, you’d be entered into the draw 20 times, giving you a 1/50,000 chance of winning which is a £0.133p return on your spend, slightly lower than the usual 1p per £1 given by amexx but the opportunity to win big is hopefully enough to encourage customers.
Market:
The market for credit cards is substantial and competitive, with key players including established financial institutions and fintech startups. The global credit card market is characterized by its sheer size, with billions of transactions processed daily.
The Uk credit card market:
-64% of adults have a credit card
-£13.8b in revenue in 2022
-average of £416pp is spent on scratch cards and lottery each years
Product comparison:
Unlike traditional credit cards that offer rewards points, cashback, or miles, this product introduces a lottery mechanism as its unique selling point. This differentiates it from competitors by blending the utility of a credit card with the excitement of winning prizes, making everyday spending more engaging.
The expected value will be slightly lower than a regular credit card.
Why me?
Why the f not. I don’t know what I’m doing, I have no idea how to do this which puts me in the same ballpark as every other person out their.
Numbers:
For every £1 spent on the card, you’d be entered into a draw to win 20% of all that days transaction fees.
We would charge merchants a flat 5p rate for each transaction and then 3%. If we did £5 million in transaction value across 1 million transactions then we would take £170k in revenue for that day (don’t charge the 3% on first £1) With this 170k, we would give 20% to that daily prize pool, giving someone the opportunity of winning £34k.
If you spent £20 on that day, you’d be entered into the draw 20 times, giving you a 1/50,000 chance of winning which is a £0.133p return on your spend, slightly lower than the usual 1p per £1 given by amexx but the opportunity to win big is hopefully enough to encourage customers.
Market:
The market for credit cards is substantial and competitive, with key players including established financial institutions and fintech startups. The global credit card market is characterized by its sheer size, with billions of transactions processed daily.
The Uk credit card market:
-64% of adults have a credit card
-£13.8b in revenue in 2022
-average of £416pp is spent on scratch cards and lottery each years
Product comparison:
Unlike traditional credit cards that offer rewards points, cashback, or miles, this product introduces a lottery mechanism as its unique selling point. This differentiates it from competitors by blending the utility of a credit card with the excitement of winning prizes, making everyday spending more engaging.
The expected value will be slightly lower than a regular credit card.
Why me?
Why the f not. I don’t know what I’m doing, I have no idea how to do this which puts me in the same ballpark as every other person out their.