Mastercard Helps Bahrain’s ila Bank Launch Loyalty Program

Mastercard has teamed with Bahrain-based ila Bank to help it introduce loyalty programs.

The partnership, announced Tuesday (May 27), is centered around things like dining, travel and luxury shopping, while also employing enhanced fraud solutions and privacy protection.

“ila has always been about the customer,” Mohamed Almaraj, the bank’s CEO, said in a news release. “We are proud to have maintained our commitment to offering customer-centric solutions and experiences in a growingly cashless economy, and this strategic agreement furthers the ila promise of ‘banking that reflects you.’”

According to the release, this effort is the latest in a series of collaborations between Mastercard and the digital, mobile-only ila, along with a multi-currency debit program, a “Pay with Rewards” loyalty program and the Mastercard airline co-brand with Gulf Air in Bahrain.

Forthcoming research by PYMNTS Intelligence has shown that most Americans have cards with basic perks such as cash back or points, or popular co-branded cards tied to retailers, airlines or hotels. Close to 60% of cardholders own an entry-level card with basic rewards, while more than four in 10 have a co-branded card.

“Nearly half of credit cardholders use their entry-level rewards card as their primary payment method,” PYMNTS wrote recently.

“Cards without rewards? They’re the primary choice for fewer than 9% of cardholders and are rarely or never used by 15% of their owners. And those cards only usable at a single store? A mere 4.5% of owners whip them out at the register. The message is clear: If there aren’t rewards, the card is likely gathering dust in your pocketbook.”

While only about one in five cardholders own a premium card with an annual fee of over $100, these consumers are incredibly engaged. Upwards of half make their premium card their primary payment method. And just a small 3.9% say that they rarely or never use them.

Premium cardholders are the most loyal shoppers, paying a high fee, determined to get their money’s worth and using the cards frequently to maximize benefits. Think of a luxury credit card as the butler in your wallet.

“Card-linked offers are also a big deal, especially for those premium cardholders,” the report added. “Owners of cards with annual fees over $100 were more than twice as likely to take advantage of their card’s special offers compared to those with no-fee cards.”

Meanwhile, a surprising 74% of premium cardholders used at least one offer in the last year, compared to just 32% for no-fee card owners.

“Present the right offer to a premium cardholder, and there’s a good chance they’ll take it,” PYMNTS wrote.