Debit Mastercard releases first ever debit rewards program that celebrates millennials
In recent plastic news, Debit Mastercard are taking on millennials by releasing the first of its kind in Australia - a Debit Mastercard rewards program.
In the past, typical rewards programs were often reserved for credit or loyalty cards, alienating Aussies aged between 18-30.
However, Mastercard have put a twist on the typical rewards program - millennials will be rewarded for not how they much spend, but for how often they reach for their debit card.
What are these ‘millennial-themed’ perks you might ask? They’ll include discounts for travel, two-for-one entertainment offers, and experiences tailor made for the 18-30 year old Australians such as as food upgrades at popular places.
However, Mozo’s Data Manager, Peter Marshall, believes that Mastercard may have jumped on the rewards bandwagon just in time.
“It’s interesting that they’ve (Mastercard) decided to run with this now, especially since we’ve seen the value offered by rewards credit cards decline over the last year or so. I think Mastercard are trying to take advantage of this with a rewards program that should appeal to millennials without encouraging them to take on more debt,” he said.
To help determine what exactly millennials were looking for in a rewards program, Mastercard conducted an experiment called the ‘Millennial Demystified Experiment’.
The experiment found that millennials would swap their ‘stigma’ for down-to-Earth alternatives. For instance, participants reported to prefer a cozy chat with Mum over fad foods, like tumeric lattes. They’d also be willing to ditch selfies to participate in more selfless acts, while trading social media fame for self-confidence.
“I think a lot of us have got millennials all wrong - they have the potential to be smart with money. But just like a lot of us, they like to see rewards for hard work,” added Marshall.
With the new buzz around debit cards, we thought it might be a good idea to have a refresher on what exactly a debit card can and can’t do in terms of everyday spending.
Pros of Debit Cards
- Convenience - With a debit card, you don’t have to carry a stack of cash or worry about an upcoming credit card payment.
- Spending limit - Unlike a credit card, you can only spend the money you have and avoid paying interest on an outstanding balance.
- Maintains credibility - If you are carrying debt on your debit card, rest assured that it will not damage your credit rating.
- Easily attainable - It’s a lot easier to receive a debit card than it is a credit card. Your bank will usually offer you one for your savings account, so you may not even need to apply for one.
Cons of Debit Cards
- Withdrawal limit - Planning on making a big withdrawal to do some serious retail therapy? Unfortunately, you may not be able to with a debit card as they have a daily withdrawal limit.
- Less secure - If you love to do your shopping online, debit cards have the tendency to be less secure as they are a direct link to your bank account.
- Can't build credibility - While a debit card won’t impact your credit rating, you won’t be able to build a great score, whereas using a credit card responsibly will.
Looking for debit card that does a little bit more? Check out our debit card comparison tool to find your next plastic match today.