Credit Cards

Jasper Mastercard Unveils New Reward Program Tying Cashback Rate to Referrals

In today’s economy, there are several ways that credit card issuers aim to entice consumers into carrying their products. Typically, this starts with some sort of sign-up bonus and continues with either cashback, miles, or points earned on purchases cardholders make. However, companies like Jasper are looking to shake up this model a bit by introducing different ways for users to earn. Now, the company has rolled out a new rewards program that allows cardholders to enjoy greater amounts of cashback as they refer more people to sign-up.

While the Jasper Mastercard offers a base of 1% cashback, customers can raise that to as high as 6% back by referring friends and family to the product. According to the card’s site, for every person referred, users will tack on an extra 0.5% cashback to their earnings rate for a full year — meaning that customers will need to refer 10 people in a 12-month period in order to achieve this top-earning rate. Of note, in order to make their first cashback redemption, cardholders will need to have at least three on-time payments. There are also some exceptions to what types of transactions earn cashback, with the purchase of gift cards and forms of manufactured spending being disqualified from this offer.

It should be noted that Jasper is actually designed for those looking to build credit. As a result, their credit limits are capped at $5,000. Additionally, the app associated with the card boasts multiple tools to help users manage their money, make on-time payments, and more.

Remarking on the need for Jasper (and taking not-so-subtle jabs at other credit card products), the company’s CEO Elnor Rozenrot said in a statement, “Today’s consumers don’t need airline miles for trips they can’t take, they also aren’t looking to impress friends with metal cards,” adding, “We’re excited to launch the Jasper Rewards Program, which is the first of its kind. It’s simply a great way for our consumers to share their love of Jasper and earn cashback along the way.”      

As it happens, Jasper isn’t the only credit card offering that’s looking to experiment with tying rewards rates to card referrals. Recently, the X1 Card (which opened its waitlist last fall) made a splash when it announced that cardholders could earn a month of 4x rewards on purchases for each person they referred — enhancing the 2x rewards it plans to offer by default, which improves to 3x for those who spend at least $15,000 a year on the card. Elsewhere, the long-in-development Vital Card intends to offer monthly bonuses to customers via a cashback pot that’s divvied up by users’ Referral Scores. Interestingly, that score is not only determined by direct referrals but also includes two additional tiers of referees. Currently, Vital is in the process of equity crowdfunding its venture and now plans to launch in the third quarter of this year.

Given the credit-builder angle and low credit limit, the Jasper Mastercard certainly isn’t for everyone. Regardless, the new rewards program that marries cashback rates to card referrals demonstrates yet another take on this growing idea. Considering that traditional credit card companies already employ referral rewards in the form of one-time bonuses and American Express previously ran a promotion where members could earn an extra 3x back on purchases for three months when they referred friends, could it be long before we see major issuers adding such reward structures to their products permanently? The way things are going, you might not want to rule it out.

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