Mastercard Incorporated (NYSE:MA) has recently joined forces with Instacart and Peacock to provide on-demand access to online shopping and streaming service subscriptions for its credit cardholders. This initiative supplements Mastercard’s existing card benefits, which have already delivered over $60 billion in rewards.
Measures like these are becoming increasingly important for Mastercard, especially as the rising costs of everyday necessities make credit cards with cost-effective rewards and benefits more appealing to consumers. Recent polls have shown that 95% of consumers with rewards credit cards select their credit cards based on the rewards and points they offer. Mastercard has strategically partnered with Instacart and Peacock, recognizing the growing consumer spending on streaming services and online groceries.
Mastercard will offer Instacart+ memberships to eligible World Mastercard and World Elite Mastercard cardholders. New members will receive a complimentary two-month trial period and a $10 discount on their second eligible Instacart purchase each month. Additionally, customers will enjoy benefits such as waived delivery fees, reduced service fees, and credit-back rewards. These perks are expected to enhance customer retention rates for Mastercard and improve its existing suite of offerings.
For those new to Peacock Premium, Mastercard cardholders will receive a $3 statement credit on their monthly streaming subscription. Furthermore, cardholders will gain access to NBCUniversal’s renowned studios and parks, including BravoCon. The partnership with Peacock aligns strategically with Mastercard’s commitment to a customer-centric approach. These collaborations are anticipated to boost Mastercard’s top-line growth as payment volumes continue to rise in the future.
Over the past year, shares of Mastercard have posted a 33.6% gain, outpacing the industry’s growth of 20.2%.
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