Latest news with #financialhabits
Finextra
6 days ago
- Business
- Finextra
Mastercard and PayPal partner to increase choice at the checkout
PayPal is working with Mastercard to use the latter's new One Credential feature to offer shoppers more payment options at the checkout. 0 Unveiled earlier this year, One Credential is a single digitally connected credential that provides consumers and businesses with a multitude of scheduled payment options spanning debit, instalments, prepaid and credit. Mastercard and PayPal are now co-developing features that tap this technology to offer shoppers multiple, personalised payment options through a single card and a simple digital first experience. The partners are pitching the move as a way for PayPal users to "build healthier financial habits" by making it easier to move from debit to "structured credit" to build credit worthiness. The partnership comes in the same week that PayPal tapped Mastercard for its new physical credit card. 'We're excited to empower consumers with more choice and control over how they pay together with PayPal, building on our collective strength of global payments innovation,' says Bunita Sawhney, chief consumer officer, Mastercard.
Khaleej Times
29-05-2025
- Business
- Khaleej Times
Follow these steps to make saving a hard habit to break
From paying your credit card bills to going out for dinner with friends, we do many things on a monthly basis that have become habits – they are part of our routine. So why not treat saving money the same way? Turn it into a monthly habit, maybe at the end of every month or whenever your salary comes through. In a few years' time, you will be glad you did. Habit forming Let's start by being realistic. If you have never saved before, it can be hard to start. A bit like going to the gym. You need to start saving and then quickly turn it into a habit. And developing a new habit doesn't need to take that long. For some tasks, they can become a habit in a matter of weeks, others take months. For saving money, you could make a note in your phone's diary as a recurring monthly event. Then you will be sent an alert and reminder to take action. From a psychological standpoint, saving every month trains your brain to prioritise future security over current spending. It makes budgeting easier, and your savings become a non-negotiable 'expense'. Make it easy Like with all habits, if they are simple and easy, then we are more likely to stick to them. Even better, what if you could automate saving money? For example, you could set a limit on your current account of Dh5,000, so that any amount above this is automatically swept into a savings account and earns a high rate of interest. Check with your bank to see if this facility is available. LIV has a number of innovative savings accounts such as Goal and Money Ahead. With Goal, you can earn up to four per cent interest a year if you follow a few rules, one of them being you need to transfer your salary into LIV. The Goal savings account has an option called 'Set & Forget' which sets automatic rules where you save a fixed amount every day, week or month. This sounds like a great way to automate your savings in case you forget. Eighth wonder of the world When you save money you earn interest which leaves you with a bigger amount. And then you earn interest on this bigger amount, interest on top of interest, or compound interest to use the correct term. Albert Einstein famously described compound interest as 'the eighth wonder of the world,' adding: 'He who understands it, earns it; he who doesn't, pays it'. So you want to be the one earning it, not paying it. This example should help convince you: Let's say you save Dh1,000 a month earning an annual interest rate of five per cent. In just five years, this will be grow to Dh78,000 and in 10 years it will grow to Dh155,000. Without any interest being paid and then not compounded year on year, your savings would only be worth Dh120,000 after 10 years. Now you can see the power of compound interest. And when is the best time to start saving? Yesterday. And the second best? Today. People often regret not saving sooner, but almost no one regrets having saved early in the lives. Best accounts Now you have been convinced that now is the right time to save, the next task is to find the best savings account. Some of the higher paying ones will give you upwards of four per cent but you need to read the small print to make sure you satisfy the terms. Some involve locking your money up for a set period, which you should be comfortable doing as you are starting a new long-term habit. Others may require a minimum balance to qualify for the higher interest rates. Banks do summarise the benefits and T&Cs but you still need to read them. ADCB Super Saver Account pays up to five per cent, which includes a base rate and a bonus rate, but read carefully the requirements needed to qualify for the bonus as it includes minimum balances you need to maintain. Emirates NBD will pay 4.5 per cent on new money going into its Plus Saver UAE dirham account while RAK Bank is paying six per cent interest but this is only available for three months. A simpler savings account is offered by Wio Bank which will pay you 3.75 per cent with no minimum amount or lock-in period. If you can lock your money up then you will get a higher interest rate – rising to 4.5 per cent.
Finextra
07-05-2025
- Business
- Finextra
Gamification in Fintech: how to engage users and improve their financial literacy: By Anastasiia Kazakova
Gamification is the use of game mechanics in non-gaming contexts. In fintech, it's a tool that makes using an app more engaging, intuitive, and even fun. Instead of dry numbers, users get achievement badges, progress bars for saving goals, savings challenges, cashback rewards for activity, and personalized prizes. These aren't just nice 'perks' — they're effective tools to boost engagement and long-term retention. In this article, I'll break down how gamification can drive your business metrics. Why gamification is gaining traction now Fintech is no longer just about 'easy payments.' The competition is intense, and companies are hunting for ways to stand out. Gamification is quickly becoming one of those strategies — in fact, over 50% of startups in the US are already integrating gamified features into their products. User loyalty is fragile. Today's users delete apps without a second thought if the experience feels boring or confusing. This is especially true for Gen Z and millennials — they expect interactivity, personalization, and a smooth, intuitive UX. Why fintech products need gamification To make financial tasks feel less intimidating — especially for beginners. To keep users coming back to the app regularly. To nudge users toward specific behaviors, like opening a savings account or topping up their balance. To encourage healthier financial habits: budgeting, saving, and investing. And this isn't just talk. Companies that use gamification have reported up to 700% more new user engagement and a 45% increase in profit margins. Done right, gamification can also boost conversion rates by up to 50%. These numbers make sense when you consider that the global gamification market is expected to surpass $92.5 billion by 2030. It's not a trend — it's a strategic direction for the next wave of fintech products. Core gamification mechanics in fintech apps For gamification to work, you need to understand what actually drives engagement. Here are the most common mechanics fintech companies are using today: Badges and achievements : Small rewards for key actions like paying bills on time, reaching savings milestones, or completing a financial mini-course. Achievements help create a sense of progress — and progress bars visualize that journey. Challenges and competitions : For example, a 'save $100 this month' task with a bonus if completed. Or group challenges like 'who can save the most this week' with friends. Cashbacks and loyalty programs : Bonuses for regular use of a card or mobile banking feature. Gamified interfaces: Avatars, animated graphs, storytelling. Some apps even include a virtual mentor to guide users toward their financial goals. The tech behind gamification: APIs and Open Banking Gamification isn't just about creative ideas — it also requires the right tech. That's where flexible infrastructure, APIs, and Open Banking come in. How APIs support gamification APIs (Application Programming Interfaces) let your app talk to other services. In gamification, this allows you to: Integrate external tools — loyalty programs, cashback partners, or social features like adding friends or team challenges. Collect user behavior data — to send personalized challenges or tips. Automate rewards — like real-time bonuses for hitting financial milestones. How Open Banking expands gamification Open Banking gives you access to users' financial data across different banks — with their permission. This opens up new possibilities: Running broader challenges that cover spending across multiple banks and categories. Creating ultra-personalized tasks based on actual spending patterns. For example: 'Cut your coffee expenses by $50 this month to earn a reward.' These technologies make gamification more than just decoration — they turn it into a core part of the user's financial journey. Real-world examples of fintech gamification Some fintech apps are already using gamification to drive business outcomes: Alma , a fintech app, introduced a lottery-style system where users earned virtual tickets for making deposits. At set intervals, real cash prizes were awarded. The idea wasn't to simulate gambling, but to build a savings habit with a hint of excitement. Long Game is another example. It combines education and gamification: through mini-games, users learn how to manage budgets, save money, and plan their finances. This approach has proven especially effective in the US and Europe, where interest in financial literacy among young users is on the rise. The challenges of implementing gamification Despite the hype, gamification comes with its own set of hurdles. It's not enough to just 'add badges' — the mechanics have to genuinely benefit both the user and the business. How to find the right gamification idea Successful gamification starts with a deep understanding of your audience's motivations. Without that, it's easy to design something nobody cares about. Start by asking: What motivates your users — competition, social interaction, visual progress? Does this feature offer real value, or is it 'just a game'? Does it naturally fit the logic and purpose of your product? If the mechanics aren't rooted in actual user behavior or needs, they won't drive results. Regulatory and technical roadblocks Gamification often relies on personal financial data, third-party integrations, and reward systems — all of which come with risks: Compliance with GDPR, PCI DSS, and other security standards. Avoiding legal gray zones that might categorize features as gambling. Preventing fraud — for example, users exploiting referral programs or faking activity. The key is finding a balance: gamification must be ethical, transparent, and legally sound — for both users and the business. Balancing fun with real financial value Gamification should never turn your app into a game for the sake of fun. The focus should always be on helping users manage money better — not just chasing badges or levels. Non-intrusive integration Gamification elements should be optional. Users should still be able to use all core features without them. But if done well, those features will be appealing enough that users want to opt in. Ideally, gamification acts as a supportive nudge — not a requirement for basic functionality. Responsibility over excitement One of the biggest mistakes is using addictive or gambling-like mechanics. Lotteries and 'easy win' rewards can create dangerous illusions of fast money. Instead, good gamification builds responsible financial habits: saving, paying on time, budgeting, sticking to goals. It's not about entertainment — it's about making the hard stuff easier and more enjoyable. Gamification as a tool for social impact Another emerging trend: using gamification to promote positive change. Some fintech apps now plant trees for every transaction, run green team challenges, or reward conscious consumption. These examples show that gamification can do more than boost engagement — it can shape better financial behavior, both for individuals and communities. Will gamification become a must-have for every fintech product? Not necessarily. In B2B products or high-end financial services, gamification might feel out of place or even reduce perceived value. But for mass-market users — especially Gen Z and millennials — interactivity, personalization, and light gamification are quickly becoming the new normal. The future of gamification in fintech Gamification is already a powerful user engagement tool. In the near future, it will become even more embedded in financial products, powered by AI. AI will enable hyper-personalized challenges, while chatbots will act as financial coaches. But the core principle won't change: make sure your mechanics serve a purpose. Don't gamify just because it's trendy — do it because it works.
