Stored value means storing money etc. into credit cards, telecom cards etc.

Meaning of stored value:

Stored value refers to money deposited into a designated account beforehand, which can be used for spending at any time, and is usually applicable to retail, leisure and entertainment, and catering industries. Stored value can be in the form of face-value vouchers, targeted consumption vouchers, points pre-deposit cards, etc., which not only facilitates the consumers, but also speeds up the cash return of merchants.

Stored value can sometimes be seen as a form of prepaid payment, where in most cases consumers convert their cash or credit card holdings to stored value, and when they spend money with a merchant, they simply swipe or scan their card, and then they can use the stored value to pay directly.

How merchants use stored value:

1. New promotions:

Merchants can attract customers by posting stored value promotions, such as: $20 for $100 stored value. This form is actually an interest-free loan, which can make customers more willing to store value to spend.

2. Increase Stickiness:

Stored value not only improves customer loyalty, but also increases customer stickiness. This is because the premise of stored value is that consumers must first purchase goods or services, and customers who have made a purchase are more likely to patronize the same merchant again.

3. Accelerated Payback:

Stored value can accelerate a merchant's cash flow because the merchant can obtain funds in advance from a bank or a third-party payment platform and deduct them from a customer's purchase, allowing them to quickly have funds that can be used for other needs.

4. Lobbying for Consumption:

When a consumer buys a stored value card, the merchant will often take the opportunity to lobby the consumer to use the stored value to consume as much as possible, especially when it is about to expire, and if the consumer does not use up the stored value, then the merchant will be able to make a bigger profit, and conversely, if the consumer uses up the stored value before it expires. If consumers use up their stored value before it expires, then the merchant will be able to recoup the money faster and increase the turnover rate.

Why do consumers need stored value:

1. To improve the efficiency of consumption:

Stored value top-ups are actually a way of improving the efficiency of payment, which is sometimes more effective than direct payment by cash or bank card, as merchants can often offer more favorable or limited discounts to stored value users. stored-value users more favorable or limited-time promotional options that are often difficult to obtain through other rewards.

2. Take advantage of discounts:

The fact that stored value can offer discounts is one of the things that attracts many large merchants to the stored value system. For example, during promotional events or special festivals, the cost of purchasing a stored value card may be reduced by a certain percentage, and the consumer realizes savings and maximizes benefits.

3. Supplementing cash:

Sometimes consumers find that vouchers or gift cards are not enough to pay for the goods or services they need, so stored value cards can supplement this type of payment, giving consumers the option of using their money flexibly.