CCAvenue has recently introduced a new marketing tool called ‘BIN based promotions’ to promote online payments in the country. The new facility will allow merchants to tie-up with the banks and rollout promotional offers. With this new feature, the merchants can display promotional offers by aligning with banks on their websites to attract more customers and promote buying.
A survey conducted by the Boston Consulting Group (BCG) in 2013 found that, nearly 30% of Indian consumers are driven by discounts and other promotional offers while making online purchases.
BIN-based promotions have become an effective marketing tool in the online world so as to encourage usage of Credit/Debit Cards. These kind of promotions allow customer segmentation so that businesses target the appropriate audience. For instance, travel websites would offer BIN-based promotions to those with traveller cards, while online retail sites would offer these deals to card holders who are avid shoppers.
Merchants can have an agreement with multiple banks and finalize on ‘Discounts’ and ‘Cashback Offers’ as a part of a strategic alliance or tie-up with co-branded Credit/Debit cards.
How will it work?
Every bank has a unique 4/6-Digit BIN (Bank Identification Number) which acts as an identifier with that bank and card type, merchants can upload the BIN pertaining to the participating bank from their backend and enable the special pricing across its promotional offerings.
Going by the current scenario, merchant has to enable this facility directly with the banks i.e. they have to differentiate by taking card details in their website, which includes a cost involved to be PCI compliant which runs into several lakhs.
As per the company, there is no extra cost for enabling this service.
To contact the author of this post, email pooja.sareen @wirefootindia.comCategory Internet Investments News