Most Australians would prefer an instant cash discount over reward points according to research by ING DIRECT.
The nationwide research shows 56% of Australians would prefer an instant cash discount to reward points when spending. When asked whether this would encourage them to use a debit card over a credit card, 77% said a 5% discount would be motivation.
When asked about reward preferences for purchases under $100:
- 56% prefer 5% immediate discount on their purchase
- 19% prefer rewards points
- 13% prefer a voucher for future purchases
- 8% prefer points towards flights
“These results point to the fact that customers are wanting to see instant benefits from their card, rather than waiting for reward points to build,” said John Arnott, Executive Director Customer at ING DIRECT.
“The findings explain the positive response to ING DIRECT’s 5% rebate through our Wave&Save* promotion.
“Customers are using the discount to offset what they see as the ever-increasing cost of living, particularly with petrol and grocery shopping,” said Arnott.
The gap between those using credit cards or debit cards alone is also narrowing. 24% only use a credit card, 53% have both credit and debit cards and 19% stick to debit alone.
“The trend towards debit cards over credit cards is clear, people are very aware of the benefits of paying now rather than paying later,” said Arnott.
56% of credit card holders have a reward scheme associated with their credit card but a staggering 29% have no idea how many points they have.
In addition to that, 26% say it takes too long to accrue points to buy anything and a further 15% have never actually redeemed their points.
*ING DIRECT is currently running a promotion – Wave&Save – whereby new customers receive 5% cash back on VISA PayWave purchases under $100 for the first 6 months.
The Wave & Save 5% new customer rebate (“Wave & Save 6 Month Rebate”) is available for a limited time only from 1 April 2013 for six months from account opening (“Rebate Period”) for new ING DIRECT Orange Everyday customers (including joint account holders) (“Eligible Customers”). The Wave & Save rebate applies on all contactless purchases made by Eligible Customers during the Rebate Period on purchase amounts of up to and including AUD $99.99. The Wave & Save rebate will be made into the Orange Everyday account immediately after transaction settlement. The Wave & Save 6 Month Rebate is intended to be used for everyday purchases only. Should you use the Wave & Save 6 Month Rebate in a manner that is not satisfactory or in line with the intent of the offer, we may place a stop or freeze on your account or remove the account from the rebate. Before making any decision in relation to an Orange Everyday you should read the Terms and Conditions booklet and Fees and Limits Schedule available on out website or by calling 133 464. Orange Everyday is issued by ING DIRECT, a division of ING Bank (Australia) Limited ABN 24 000 893 292, AFSL and Australian Credit Licence 229823. ING DIRECT’s colour orange is a trade mark of ING DIRECT and the ING Group of companies.
PR Manager, ING DIRECT
+61 2 9018 5160
+61 413 317 225
About ING DIRECT
ING DIRECT pioneered branchless banking in Australia by offering the first online, high interest, fee free savings account. Our low cost operating model allows us to pass these savings on to the customer in the form of great value products and services. Today, ING DIRECT has more than 1.4 million customers with $29 billion in deposits and $38 billion in mortgages and a range of products including transaction accounts and superannuation. Please note ING DIRECT is never abbreviated to ING.