Banking Rewards & Dining
Banking Rewards & Dining: A Changing Landscape Presented by: Sponsored by: INTRODUCTION Banks and financial services companies have used Travel remains dining as a key differentiator for their card products the most impacted for many years. The COVID crisis has accelerated this category, still trend while upending existing usage of cards for other down over 50%... services. Simply put, during the pandemic, travel and Crisis fosters related benefits have become less relevant. Card issuers innovation. are pivoting to where consumers are spending instead, Vasant Prabhu namely: food. Vice Chairman and Chief Financial Officer, Visa Vasant Prabhu, Vice Chairman and CFO, of Visa, noted as much during a July earnings call, stating: “Travel remains the most impacted category, still down over 50%. Within the restaurant category, card-present spend is still declining, while card-not- present spend continues to grow significantly, with quick service restaurants outperforming.…Crisis fosters innovation. There’s a lot going on.”1 Card issuers are innovating. They are experimenting with differing approaches of how to adapt offerings to meet customers’ dining, delivery, and grocery needs during, as well as perhaps after, the pandemic. Background: dining and dining cards 2017 Dining cards have a long and rich heritage, starting Launch of Capital One Savor Card, with the launch of the Diners Club Card in 1950 by the first card catering to food spend businessman Frank McNamara. He founded the company following an incident: he forgot to bring his wallet to a New York restaurant and vowed never to be 2018 similarly embarrassed again.2 Citi Prestige increases earn for dining rewards to 5X points Over the past 5 years credit card companies have recognized dining as a key focus area to attract affluent consumers.
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