Recent research unveiled that consumer spending has drastically decreased as a result of the COVID-19 pandemic, resulting in a lack of spending at small businesses and financial strain on the merchants. To support consumer shopping at these smaller retailers, American Express is offering cardholders cashback (up to $50) when they purchase from a small merchant.
When consumers spend $10 or more at a small business, they'll receive $5 in statement credits for up to 10 purchases. Both consumer and business Amex cards will be eligible for the promotion which ends on Septemeber 20th, 2020.
Moreover, to help consumers locate these businesses, American Express launched the 'Shop Small Map' which showcases retailers ranging from takeout to online shopping.
Image Credit: Shutterstock, American Express
Key Themes Behind This Trend
- Support-small-business Cashback Offers
- A trend of credit card companies offering cashback incentives to consumers who spend at small businesses to support local economies.
- Digital Mapping for Local Business Promotion
- An increasing trend of companies developing digital maps to showcase and promote local small businesses.
- Consumer Spending Shift to Small Businesses
- A trend of consumers shifting their spending habits towards supporting small businesses, particularly as a response to external economic pressures.
Where This Applies
- Credit Card Companies
- Opportunity for credit card companies to generate revenue by offering cashback incentives to cardholders for supporting small businesses.
- Digital Mapping Technology
- Opportunity for tech companies to develop digital mapping technology to showcase and promote local small businesses.
- Small Business Owners
- Opportunity for small business owners to take advantage of cashback offers and digital mapping technology to promote their businesses and increase sales.
