When planning a loyalty scheme, a prize draw or a competition, the first step is to choose attractive prizes. It makes the most sense to tailor them to the target audience so that the campaign genuinely attracts interest and yields tangible returns. To this end, you should take into account, amongst other things, the social status, age and purchasing preferences of potential participants. However, research shows that cash prizes are the most sought-after rewards.

Methods of paying out cash prizes

Surveys show that over 80% of Polish adults value money because it gives them independence. More than 50% admit that wealth is an indicator of prestige and status, whilst 26% believe that it actually determines a person’s worth. It is hardly surprising that it is precisely the opportunity to earn extra money that is most highly valued.
In this article, we will discuss the most popular methods of paying out cash prizes, which are common on the Polish market and used in marketing campaigns.

Bank transfer

Without a doubt, the most popular way of awarding cash prizes is by transferring the money to the winner’s bank account. The winner is required to provide the organiser with their account number and personal details. Once their identity has been verified, the transaction can be carried out. Although this method is tried and tested, simple and convenient, it is gradually being replaced by more modern, faster solutions.

Instant transfers

The processing time for interbank transfers depends on a number of factors, which often means it can take up to several days. For many prize winners, this is too time-consuming and a logistical hassle. For this reason, special services have emerged on the market, provided by National Payment Institutions and supervised by the Polish Financial Supervision Authority. One of these is „Ekspres Wallet”, which enables any number of instant transfers to be carried out automatically. This tool allows users, amongst other things, to personalise transfer titles and to track the progress of transactions in real time.

Pre-paid cards

A common form of cash prize is the so-called prepaid card. The winner then receives a physical plastic payment card which they can use to make payments anywhere. It is also sometimes possible to withdraw the funds from an ATM. Whilst this option is convenient for winners, it can be problematic for the organiser. Preparing the cards involves establishing a partnership with a bank, which can be time-consuming and labour-intensive. Opting for pre-paid cards also entails additional costs, including fees for issuing them, maintaining them and processing certain transactions (e.g. ATM withdrawals).
On the other hand, this method allows you to pay out unusual amounts (which is not always possible with the other methods discussed in this article) and to award large prizes (even five-figure sums). An additional advantage is the option to brand the card, which will reinforce a positive association with the brand every time a payment is made.

HAL-cash (defunct)

The HAL-Cash system was still in operation on the Polish market until 2017. BZ WBK Bank had developed a tool that allowed users to transfer funds instantly via their mobile phones. The recipient would receive a special SMS code which, when entered at an ATM, authorised the withdrawal of a specific amount. This innovative solution was extremely convenient, but it quickly became a target for hackers. Due to numerous cases of misuse and fraud, the system was deactivated and withdrawn from the bank’s services.

BLIK

The most modern and increasingly popular method of receiving financial rewards is the Polish mobile payment system BLIK. This tool allows you to use your smartphone to pay for purchases in high-street and online shops, as well as to deposit or withdraw cash at ATMs or make instant bank transfers. The service is already supported by most Polish banks and is becoming widespread for online payments. But how does the payment of a prize via BLIK work? The organiser, in collaboration with a selected bank, makes a transfer to a specified number of codes. The winner receives a special cheque number and a PIN, which they can then use at any ATM (provided, of course, that it supports BLIK technology).

This method significantly streamlines the prize-awarding process and also allows for real-time monitoring of whether the winner has already collected the money. This option is beneficial for the winner, as they can receive their winnings quickly and conveniently. Although BLIK is extremely popular, it is also important to bear in mind its drawbacks. Using it involves high costs, and furthermore, it only works for full amounts – an ATM is unable to dispense a sum that cannot be provided in the form of banknotes.

Summary

The solutions listed above are useful tools that are now widely used by organisers of loyalty schemes, lotteries and other marketing campaigns. The choice of how to distribute prizes should always be based on the preferences of the target audience, as well as the organiser’s capabilities. Support from specialists will certainly help in making the right decision. i360 Sp. z o.o. manages all the tools described above, so it selects the appropriate option based on an audit and discussions with clients, and then handles the entire process. In this way, the best solution can be found, one that will benefit both parties – the participants and the organisers.