Unlocking Cross-Border Spend Through Personalization and Context-Aware Data Intelligence
As the global economy becomes more interconnected, cross-border spending offers an enormous growth opportunity for payment issuers and networks. However, capturing this potential requires more than traditional strategies. Success in this lucrative segment hinges on a deeper understanding of customer behavior, preferences, and context. By leveraging personalization and contextual targeting, issuers can transform cross-border transactions into a key driver of growth and loyalty.
The Importance of Cross-Border Spending
Cross-border transactions are one of the most profitable areas for financial institutions. From international travelers and expatriates to online shoppers buying from global merchants, this segment is characterized by higher spending on premium goods, services, and experiences. For issuers, this translates into higher margins and additional revenue streams like foreign exchange fees.
But with multiple payment options available, simply being an alternative isn’t enough. Issuers need to offer convenience, value, and compelling reasons for cardholders to choose their card for cross-border purchases.
How Personalization Transforms Cross-Border Spending
Personalization has become the ultimate differentiator in engaging cardholders. With Flybits’ platform, issuers can harness real-time data, customer preferences, and contextual signals to craft tailored experiences. These personalized touches ensure that cardholders receive the right offer or message at the moment they are most likely to act, whether they are planning a trip, shopping abroad, or making an international online purchase.
The Power of Contextual Targeting
Contextual targeting adds an additional layer of precision to personalization. Here are some ways issuers can use it to drive cross-border engagement:
Pre-Travel Recommendations
- Use travel bookings or past behavior to predict when a cardholder is planning a trip.
- Deliver personalized messages about travel benefits, such as no foreign transaction fees or access to airport lounges.
In-Destination Offers
- Leverage geolocation and partnerships with local merchants to recommend dining, shopping, or unique experiences.
- Send real-time alerts for discounts or rewards aligned with the cardholder’s preferences.
Online Cross-Border Shopping
- Identify cardholders shopping internationally and incentivize them with cashback or loyalty points for using their card.
- Highlight added benefits, such as fraud protection or extended warranties, to build trust and encourage usage.
Currency and Exchange Rate Optimization
- Proactively inform cardholders of favorable exchange rates or offer fee waivers for transactions abroad.
Crafting the Perfect Cross-Border Journey
A seamless cross-border journey involves multiple stages, each requiring targeted strategies:
Pre-Travel Stage
Example: A cardholder books a flight to Tokyo. Flybits’ platform sends a push notification reminding them of their travel insurance benefits and partner merchant discounts in Japan.
Arrival and Stay
Example: Upon arrival, the cardholder receives a 10% discount offer for a nearby partnered restaurant. As they shop, they’re notified about earning extra loyalty points at specific stores.
Post-Travel Engagement
Example: After returning home, the cardholder gets prompted to redeem loyalty points earned abroad for exclusive travel rewards, strengthening their connection to the card.
The Flybits Advantage
Flybits empowers issuers to:
- Deliver Seamless Multi-Channel Experiences: Reach cardholders via app notifications, SMS, email, or in-app banners tailored to their context.
- Personalize Rewards and Offers: Use zero-party data, past transactions, and geolocation signals to customize benefits.
- Leverage Dynamic Segmentation: Identify frequent travelers or cross-border shoppers and design campaigns that maximize engagement.
Proven Results
Adopting a contextual targeting and personalization strategy delivers measurable outcomes:
- 20-30% Increase in Card Usage: Timely, contextual nudges encourage cardholders to prioritize your card.
- Higher Cross-Border Spend: Relevant, localized offers drive increased transactions.
- Enhanced Loyalty: Delivering meaningful, timely benefits keeps cardholders returning for future travels.
Take the Lead in Cross-Border Engagement
Cross-border spend isn’t just an opportunity—it’s a necessity in today’s competitive payments landscape. By meeting cardholders with the right message at the right time, personalization and contextual targeting empower issuers to drive both engagement and profitability.
With Flybits, you can create contextualized experiences that turn every cross-border journey into a moment of value for both your customers and your business.
About Flybits:
Flybits revolutionizes how financial institutions deliver personalization. Their award-winning framework simplifies the connection between financial institutions, their data, and their customers. Flybits’ platform accelerates the delivery of critical use cases with minimal IT intervention, empowering digital teams to seamlessly deliver data-led insights across all channels. Supported by leading fintech investors including Point72 Ventures, Mastercard, Citi Ventures, TD Bank Group, and Information Venture Partners, Flybits has offices in New York, London, and Toronto.