Dollar General launches financial products to reach new customers

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  • Dollar General launched bank accounts and debit cards with Incomm Payments, a buy now, pay later (BNPL) pilot with Sezzle, and a rewards redemption program with FIS.
  • The discount retailer’s new offerings reflect the growing prevalence of payments as a service (PaaS).
  • Insider Intelligence publishes hundreds of insights, charts and forecasts on the payments and commerce industry. Learn more about becoming a customer.

The news: Discount retailer Dollar General has launched three financial offers, according to a press release.

Graph showing why American adults use BNPL


Insider information


Spendwell bank accounts and debit cards. Customers can choose between a no-fee account or an account that allows them to earn 1% cash back on Dollar General purchases. Both accounts, which are enabled in partnership with InComm Payments, come with MetaBank-issued Visa debit cards and access to the Spendwell mobile app.

A buy now, pay later (BNPL) driver with Sezzle. Customers at more than 1,700 Dollar General stores across Texas can use Sezzle to pay for their purchases in four interest-free installments.

Cash back in partnership with FIS. Dollar General is testing a feature using the FIS Rewards Redemption Network that allows customers with eligible debit and credit cards to redeem rewards points at the point of sale.

What it means: New offers from Dollar General can help attract customers and encourage repeat purchases.

Bank accounts and debit cards could attract unbanked and underbanked consumers. Low-income consumers are the largest customer segment of discount stores, by PYMNTS, and tend to be disproportionately unbanked. Dollar General’s solutions could help customers access low-cost or free digital financial services with a brand they are already familiar with, helping to increase throughput penetration and increase store volume.

The BNPL solution meets the demand for flexible payments. Thirty-one percent of American adults said they used BNPL for greater payment flexibility, by a 2021 SurveyMonkey and Momentive poll. Dollar General can use its integration with Sezzle to provide low-income consumers with short-term services


liquidity

to make the necessary purchases.

Rewards can help increase conversions and customer loyalty. Dollar General’s rewards integration could strengthen its value proposition: 25% of US respondents said that applying rewards to a specific purchase made with a card would be “extremely valuable.” by Insider Intelligence’s “US Cash-Back Credit Card Emerging Features Benchmark 2021” report.

The Trend: New offerings from Dollar General reflect the growing prevalence of payments as a service (PaaS) — when payment providers offer infrastructure and services that brands can then rely on.

PaaS allows providers to scale their offerings, reach new customers, and increase their revenue potential. And access to payment infrastructure enables brands to create new value-added solutions that can help them stand out and retain customers. This option is also more affordable for brands than the research and development costs associated with developing similar solutions in-house.

Retailers love Walgreens have used PaaS to create new solutions, but the technology has also been horizontally integrated into other payment services. For example, Ingenico spear a plug-and-play, cloud-based solution that enables acquirers, payment service providers and ISVs to create and manage in-store payment offers tailored to their merchants.

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