American Express has taken first such initiative to come up with a unique reward programme that will provide reward points to companies as against its individual users of its card.
Under this new reward programme, the points earned on corporate spending such as travel and entertainment will not accrue to the employee who are spending it but to the company.
Mr. Manoj Adlakha, Vice- President and Country Head India, Global Corporate Payments, American Express said that his is the first offering in any card payment platform in India where a rewards programme is at the company level.
This programme is mainly targeted at mid-sized companies; the corporate membership rewards programme would help companies to achieve greater savings and benefits on their company expenses.
Even if there were to be employee attrition, the benefits of corporate spend in the form of reward points will be entirely with the company, it was pointed out.
For Amex, the corporate membership reward programme will be able to attract more customers. It will also lead to usage of cards as against cheques.
"We are saying start using the cards. The cheques are not going to get you the benefits that we offer," Mr. Adlakha said.
This will also help any organization in the current tough economic environment who are looking to save money.
"It is all about rewarding the behavior of the organizations. The benefit of entire points goes to the mid-market companies. These companies love it as there is no expiry of the points. There is also no cap as one could have lakh of points".
There are 350 options made available for organizations to use these reward points. These include cash-back facility, business travel and even staff incentives.