Media365
Bank of Baroda Ltd., under the guidance of Reserve Bank of India (RBI) and in collaboration with a fintech firm, has unveiled a pilot of what it called new functionality for merchants built on the “programmability” of the Central Bank Digital Currency (CBDC) – the “Merchant Loyalty/Cashback Programme”
This industry-first initiative would enable small and medium merchants to independently design and launch loyalty/cashback programmes for their customers using Bank of Baroda’s “bob Merchant App”, the lender said in a statement.
Merchants such as local retail shops, grocery stores and pharmacies that have an account with Bank of Baroda and are registered on the bob Merchant App, can now independently design and run cashback/loyalty programmes, without the need to make any corresponding investments in procuring the infrastructure or software to operate such a reward programme, the bank said.
This initiative is aimed at boosting the adoption of CBDC, making it more appealing & rewarding for merchants and customers. It will also help small & medium merchants to stay competitive, encourage repeat business and expand their customer base, the bank said in a statement.
Sanjay V. Mudaliar, Executive Director, Bank of Baroda said their loyalty/cash back programme – “a first in the Indian banking sector, is an innovative use case that empowers our small and medium-sized merchants to create tailored cashback offers that will foster greater customer engagement and retention.”
Published – February 27, 2025 11:00 pm IST
