It’s no secret that pet parents love spending money on their dogs, cats, birds, fish, or other animal friends. In 2021, United States consumers spent $123.6 billion on their pets. Expenditures ranged from pet food to pet supplies and vet care to grooming and other services.
The amount people spend on their pets isn’t the only thing that’s increasing. The number of pet parents is also on the rise. In 2021, 70% of households in the U.S. had a pet, up from 56% in 1988. Nearly one-third of millennials have pets, making them the generation most likely to be pet parents.
In short, pet parents are people who are ready and happy to spend on their furry, feathery, or scaly companions. Introducing a branded debit card for pet owners lets you capture their loyalty while increasing your company’s revenue.
What Are Branded Debit Cards for the Pet Industry?
Traditionally, debit cards are connected to a person’s checking account. People can use debit cards to withdraw cash from ATMs or make purchases at brick-and-mortar or online stores.
Branded debit cards are white-label cards that connect to a demand deposit account (DDA). A DDA is insured by the Federal Deposit Insurance Corporation (FDIC), just like traditional bank accounts are, meaning the customer’s money is protected against loss. DDAs also have a routing and account number that allows the cardholder to get paid via direct deposit.
Pet-centric branded debit cards typically offer rewards specific to pet owners or those who work in the pet industry. For example, several pet marketplaces exist, such as Barkly. Dog parents looking for sitters or walkers sign up for Barkly, where they can then connect with local, verified dog walkers and pet professionals.
Pet owners can use a branded debit card to pay for walking services through Barkly. Alternatively, Barkly can create a debit card program and use it to pay the walkers who find work through its platform.
Benefits of Offering Branded Debit Cards to Pet Parents
Whether your company sells products directly to pet parents, connects pet owners to service providers, or offers services to companion animals, there are many benefits to introducing a branded debit card. Here’s why the card can help you establish loyalty with customers and boost your revenue.
Pet Parents Are Ready to Spend
The average cat owner spends around $1,150 per year on their feline friends. Dog owners shell out a bit more, spending $1,391 annually. Those totals don’t include extras, such as dental care, or one-time costs, such as spay or neuter surgery and purchasing a crate or litter box.
Offering pet parents a branded debit card helps your company capture a more significant portion of that spending, especially if the card offers perks designed just for pet owners.
Pet Parents Want Deals and Rewards
Who doesn’t love a good deal? Even though pet parents love to spoil their companion animals, many are looking for ways to save money. Introducing a branded debit card that offers perks to pet owners, such as cash back when they shop your store or book services through your website, encourages more people to sign up.
It can be worthwhile to consider offering rewards that go beyond your company and that specifically appeal to animal lovers. If pet owners use the card to shop elsewhere, they can earn points that can be donated to animal shelters or other rescue programs. Another option is to tie the card to a discount on pet insurance.
You have several reward program options when you create a branded debit card using Hydrogen. You can offer a program that provides discounts at a list of selected merchants, or develop a custom program tailored to the needs and wants of pet parents.
It Simplifies Payment for Gig Workers
The gig economy has reached the pet industry, as evidenced by the rise of dog walking and pet sitting marketplaces like Barkly. Professional dog walkers use platforms like Barkly to connect with clients, advertise their services, and simplify running a freelance business.
These marketplaces can take advantage of debit cards to streamline payments for pet sitters and dog walkers. If a pet care provider decides to sign up for compensation through a debit card, any earnings they get through the platform get deposited onto the card. Instead of waiting a few days to get their cash, the funds are ready to be spent or withdrawn from the card right away.
It Can Increase Your Company’s Revenue
Every time someone uses their debit card, the processer charges an interchange fee. The fee rate varies from processor to processor, but a portion goes to the card issuer. If you create a branded debit card, you’re the card issuer and are eligible to collect revenue from the fee.
The fee varies based on the plan you choose, but it’s usually between 0.5% and 0.75% of eligible transaction volume. The higher your card’s transaction volume, the higher your fee percentage.
These fees can contribute several thousand worth of extra revenue each month. If your cards have $999,999 in transaction volume and earn a 0.5% fee, your company could take in an additional $4,999 monthly.
Many debit card programs are expensive to set up and operate. That’s not the case with Hydrogen. We offer month-to-month contracts and per-user pricing. There are no set-up fees to get started. Using our platform can help your pet-centric company save more than $250,000.
How to Create a Branded Debit Card
It’s easy to create a branded debit card with Hydrogen. Our process takes just a few days rather than months, and you can expect your card to be ready to launch in a few weeks.
When you sign up for our platform, you’ll get initial approval within a day. The initial approval lets you access the portal, where you can complete and submit an application.
You can also adjust the program as you go based on customer use and response.
Create Branded Debit Cards for Pet People With Hydrogen
Whether you want to capture pet parents’ spending, establish a loyal customer base, or streamline paying dog walkers and pet sitters, Hydrogen’s no-code platform can help you get a debit card program up and running quickly. Contact us today to see how it works for yourself.