While cashback payouts are our bread and butter, they can be a headache for many marketers—yes, we hear you! Figuring out the most cost-effective payment method for your promo is one of the trickiest pieces of the puzzle. But stick with us because, by the end of this guide, you’ll be cruising these waters with absolute confidence! 

A payment solution that balances costs, brand goals, local audience preferences, and sustainability will automatically enhance your campaign’s appeal, increase participation rates, and boost customer satisfaction. Not to mention, it will make your life much easier. 

This guide will help you make this not-so-easy decision with practical tips from our 15 years of experience.  

Choosing Your Cashback Payment Method: 3 Things to Consider

Choosing the most suitable payout option is less complicated than it seems. Part of the decision-making process involves key marketing expertise that you already have. And we always recommend seeking legal and finance advice to deal with regulations and banking fees. Still, having a clear idea of what can influence the costs and viability of different cashback solutions will help you ask the right questions.  

So, let’s break down the three crucial elements you should consider to make the best choice!   

1. Cost-effectiveness 

Money, money, money. What marketer doesn’t have budget and ROI concerns? (And if you don’t, let us know the secret?) The good news is that some payment types can reduce overhead expenses and increase your return on investment.  

For example, processing traditional direct bank transfers involves very little expense. They are safe, have low transaction fees, and require no setup cost if you already use an automated cashback processing system. While newer payment methods like cryptocurrency can add extra costs related to integrating blockchain technology, ensuring legal compliance, and updating your system on an ongoing basis to keep up with the evolving nature of this payment type.  

2. Marketing Strategy and Customer Satisfaction

Needless to say, your cashback payment method should align with your marketing strategy, reinforce your brand’s positioning, and ensure a flawless customer experience. Here are a few practical examples: 

Consumer Preferences: Your cashback payouts should resonate with the local culture and consumer preferences. For instance, while people in many countries across Europe consider cheques outdated, in the US and Canada they’re used in everyday transactions.

Demographic Preferences: Payment method preferences can vary across demographics. Younger, tech-savvy audiences may lean towards digital wallets or cryptocurrencies, while older groups might prefer more traditional methods like direct bank transfers or cheques. 

Brand Awareness and Image: To boost brand visibility, consider branded prepaid cards. Whether digital or physical, they will keep your brand front and centre every time consumers use them. Plus, branded prepaid cards offer additional marketing opportunities, like co-branding. The payment method can also reflect your brand’s image. For example, brands emphasising innovation may choose digital wallets or Revolut, while more traditional businesses might prefer bank transfers or cheques. 

Customer Experience: Receiving cashback payouts should be a seamless and hassle-free experience for your customers. A straightforward and familiar payment enhances customer satisfaction and encourages repeat purchases. Offering quick payout options such as Revolut, payment apps, or instant bank transfers can be a compelling feature of your promotion, appealing to consumers’ desire for immediate gratification. 

Consumer Costs: Certain payment types, like prepaid cards and digital wallets, may not be as financially convenient for consumers. Many providers apply transaction and currency conversion fees when customers use them for everyday purchases. This reduces the amount of money they can spend, diminishing the overall value of your cashback offer. So, when choosing the payout method for your promotion, make sure your customers are not penalised.   

3. Localisation

We know… localisation is another common cause of marketing headaches — we covered this topic in a previous blog post. But what’s the point in creating a fantastic offer if consumers cannot redeem it because their local financial infrastructure does not support the payment method? Choosing a cashback payout that aligns with the local financial landscape will boost sales, increase participation, and reduce costs. So, here are a few things you need to consider: 

Geopolitical Landscape: Geopolitical factors like wars or embargoes can create disruptions in payment processing due to political instability or economic sanctions. For instance, the ongoing conflicts in Israel and Ukraine pose challenges in processing payments to these regions. Similarly, European and American sanctions against several Russian banks limit payments to most Russian bank accounts. 

Accessibility: It’s important that the chosen payment method is easily accessible to customers. For example, in many African countries, a majority of consumers don’t have bank accounts which makes it difficult to pay cashback via wire transfer. Instead, these countries’ most common payment method is through mobile networks – M-PESA. In other regions, like remote areas of South America, consumers may prefer traditional payment methods like cash or cheques due to the limited access to banks and ATMs. 

Technology Adoption: Digital payment solutions like e-wallets and payment apps are more popular in certain countries and regions. From Tokyo to Silicon Valley, tech-savvy consumers use these payment methods for everyday expenses. While traditional payment methods remain prevalent in less developed countries such as those in Africa, parts of Southeast Asia, Latin America, and Eastern Europe. 

Cultural Norms: Cultural practices also influence incentive preferences. For instance, while credit cards are still the top choice for payments in Singapore, digital wallets are expected to replace them by 2026.  

Legal and Regulatory Compliance: To avoid legal complications, ensure that the chosen payment method complies with global and local regulations. For example, KYC (Know Your Customer) regulations require that businesses identify and verify the identities of their customers to prevent fraud and money laundering. For cashback promotions, this might involve collecting and verifying personal information from customers before processing any payments. While many online resources can give you a useful overview of different legal landscapes, always, always, always seek professional advice before launching your promotion. 

Pros and Cons of Cashback Payment Options

The choice of payment method can influence the overall success of your campaign by affecting everything from consumer satisfaction to your bottom line. This deep dive into six of the most popular payment solutions will help you make informed choices based on your specific needs. 

Which payment solution better aligns with your promotional objectives, budget, target audience, and sustainability goals? Let’s find out! 

Direct Bank Transfer: The Old Reliable

Bank transfers are undoubtedly one of the most popular cashback payment methods globally. However, their effectiveness depends on the target market’s financial infrastructure. While widely accepted in regions with robust banking systems, such as Europe and North America, they may not be the best choice in parts of Africa, South America, and Asia, where access to banking services is limited.  


  • Highly secure and generally fee-free for both parties 
  • Convenient for customers with existing bank accounts 
  • Swift processing times, often within hours 
  • Can be processed in any currency with minimal exchange fees 
  • Minimal carbon footprint 
  • No physical waste 


  • Excludes customers without bank accounts.  
  • Costs to set up an automatic payment system if you don’t have one
  • May be challenging in regions with poor financial infrastructure or ongoing conflicts/sanctions 

Geographical Considerations:  Research your target market’s banking penetration, geopolitical stability, and any potential sanctions that could hinder bank transfers. 

Revolut and other payment apps: Innovative but Geographically Limited 

Payment apps like Revolut have revolutionised how we handle transactions, offering convenience and efficiency. However, their availability varies across regions, and adoption rates may differ among demographics. 


  • Instant transfers and competitive currency exchange rates,  
  • Popular among tech-savvy consumers  
  • Minimal carbon footprint 
  • No physical waste 
  • Financial sustainability for consumers who can track and manage spending


  • Limited availability and suitability for non- tech-savvy users 
  • Potential integration costs for a seamless cashback payment infrastructure 

Geographical Considerations: While Revolut is rapidly expanding, local payment app solutions like Bizum in Spain, Paytm in India, and Alipay in China dominate specific markets. Avoid offering this option in regions with limited fintech adoption or infrastructure. 

Digital Wallets: Convenient but Costly Integration 

E-wallets have gained popularity among smartphone users for their convenience and speed. However, integrating them into your cashback payment infrastructure may come with additional costs.  


  • Quick and convenient for tech-savvy consumers  
  • Increasingly accepted by merchants worldwide
  • Some digital wallet providers also support cryptocurrencies 
  • Minimal carbon footprint 
  • No physical waste 
  • Financial sustainability for consumers who can track and manage spending 


  • Initial setup costs for integration and security measures
  • Limited availability and currencies 
  • Currency exchange fees for users 

Geographical Considerations: E-wallets thrive in regions with high smartphone usage and robust internet infrastructure, such as parts of Asia, Europe, and North America.  

Cheques: Not Dead Yet 

Don’t count out the humble cheque just yet. While perceived as outdated in some regions, cheques remain a familiar payment method for certain demographics, especially in North America.  


  • Appreciated by older demographics.  
  • Can be delivered digitally or physically
  • Funds are immediately available upon deposit 
  • Digital cheques leave minimal carbon footprint and no physical waste  


  • Physical cheques incur additional postage expenses  
  • Digital cheques may require setup costs for issuance 
  • Currency exchange fees for users in different regions
  • Physical cheques generate carbon emission associated with print and transportation and physical waste 

Geographical Considerations: Physical cheques are a viable option in regions with limited digital infrastructure or where traditional banking methods are preferred. Digital cheques cater to tech-savvy users globally.  

Prepaid Branded Cards: Popular But Limited Currencies

Prepaid branded cards are a unique opportunity to enhance brand awareness while providing a convenient payment solution.. However, their costs and limitations should be carefully considered. 


  • Enhance brand visibility and offer co-branding opportunities
  • Available in physical and digital formats. 
  • Widely accepted by merchants and e-commerce websites
  • Digital cards leave minimal carbon footprint and no physical waste


  • Costs associated with production and distribution of physical cards  
  • Annual fees on dormant funds to prevent customers from accessing their cashback indefinitely 
  • Available only in Euros, US and Canadian Dollars, and British Pounds
  • High currency exchange fees for some users 
  • Digital prepaid cards cannot be used in-store unless linked to a digital wallet
  • Physical cards generate carbon emissions associated with print and transportation and physical waste

Geographical Considerations: Prepaid cards are effective in markets with developed financial infrastructure and widespread adoption of electronic payment systems such as the USA, UK, and Australia. 

Cryptocurrency: Cutting-Edge but Volatile and Costly

Cryptocurrencies use blockchain to allow direct transactions without banks, appealing to tech enthusiasts and offering cheap cross-border payments. 


  • Instant transactions without traditional banking infrastructure
  • Lower fees for international transfers 
  • Appeal to finance and tech-enthusiasts 
  • Minimal carbon footprint 
  • No physical waste 
  • More energy efficient than traditional financial systems 


  • Highly volatile value, and varying regulations across countries
  • Potential integration, maintenance, and security costs
  •  Limited familiarity and acceptance among some consumers  
  • Exposure to financial risks due to volatility 

Geographical Considerations: Cryptocurrencies are primarily used in markets with high digital literacy and adoption rates, like the United States, South Korea, and parts of Europe. Several countries have restricted or banned their use due to concerns over financial security and regulatory control. 


Choosing the right payment method for your cashback campaign is more than just a box to check—it’s a crucial decision that can impact its success. So, next time you’re planning a cashback promotion, weigh factors like local banking systems, legal compliance, cost-efficiency, customer convenience, and sustainability. It will help you select a solution that meets your promotion’s goals, enhances customers’ engagement, and improves their experience with your brand.

In this guide, we’ve unpacked the nuts and bolts of various payment methods—from the tried-and-true to the cutting-edge. Now that you have a complete toolkit to make informed decisions about the most suitable payout option for your cashback promo, don’t forget about it. Bookmark this blog post in your browser and come back every time you are in doubt.