Groupon launches e-card with cash-back benefits

The debit and credit card are no longer the only cards in our wallets. With e-payment options emerging, more money is being stashed on electronic cards, and companies smartly jump in providing customers with incentives to ‘go electronic’.

This week Groupon launched Gcard, which extends its services from offering discounted deals on its website to a whole new level, explains Simon Watfa, Head of Marketing & Corporate Development at Groupon Middle East.

The card can be used at any ATM with a Visa logo, it can be used in making purchases online, to receive cash back from partner merchants and to turn this cash back into petrol for your car.

"Basically, there are two elements to the Gcard. It functions as a debit card, and it offers benefits to the customer in the form of some of the region’s highest cash backs," Simon said.

"We have aligned with 20 companies so far, and we are expecting to make that 50 by the end of this week. These companies provide cash back of between 10-25 per cent of the purchase price, some of the highest cash back offers in the region."

The merchants offering cash back are mostly restaurants, while leisure and wellness centres are currently participating in the deal as well. Rainforest Café, Hot and Spicy, Kitsch Cupcakes and Spin Dubai are some of the names.

Once the cash back has been received on the Gcard, it can be used to purchase deals on the Groupon website, or to be redeemed for free fuel at any gas station in Dubai that offers payment by card.

"The 'free fuel' is one of the selling points of the card. It is the first time in the region that customers can save money on fuel. Transportation is common among all residents, so we thought this would truly benefit most of our customers," said Simon.

Although the cash back funds may only be used at Groupon and gas stations, another option is to load the card with your own funds, Simon continues to explain.

Once the funds are on the card, it can be used in stores, for online payments, or to withdraw the cash in any part of the world. "When you are abroad and you want to use the card to withdraw money from an ATM, you will receive the cash in the local currency and you will be charged the going rate for converting."

Another option provided is to transfer the funds to other Gcard holders, for which a charge of Dh5 will be deducted, regardless of the transferred amount. "To set these rates we have signed an agreement with Majid al Futtaim," explained Simon.

This does not mean that sending money abroad has just become cheaper. "The Gcard holder must be a UAE resident," explains Simon. "When this resident is on vacation, for example, somebody with a Gcard can transfer money to this person though the Gcard."

"At this stage, we cannot comment on whether or not any of the other countries will emulate this platform," said Alexander Kappes, CEO of Groupon Middle East. When asked what benefits the Gcard has in comparison with a regular debit or credit card, he explained:

"Since it is a prepaid card, the Gcard also offers a safer alternative as compared to conventional credit or debit cards for online & offline purchases since you only spend the amount you choose to load onto the card. With a customised PIN, customers can withdraw cash at millions of ATMs around the world.

"Groupon prides itself in being the operating system of local commerce and we have constantly strived to make the Groupon experience as simple and convenient as possible. As such, the GCard is an extension of the Groupon lifestyle experience which customers will use for their everyday spends - from shopping online, to paying their utility bills and of course for huge savings on fuel costs.

Simon added: "We noticed that customers sometimes face difficulties in getting a Visa card. The Gcard offers these people the opportunity to make payments online."

While the Groupon website caters to a specific audience between the age of 18-25 and with a set income, the Gcard targets a much larger pool of customers, he explained.

However, for the time being the benefits are for the residents of Dubai and Abu Dhabi only. "We are actively working towards making the GCard available in several retailers and outlets across the UAE. For the time being the GCard is available at more than 130 Enoc, Eppco and Zoom outlets in Dubai and from the Groupon offices in Dubai and Abu Dhabi," said Alexander.

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