BOB Launches Industry-First Merchant Loyalty/Cashback Programme using Programmable CBDC

Bank of Baroda, one of India’s leading public sector banks, has launched a pilot programme for a merchant loyalty/cashback initiative built on the programmability functionality of Central Bank Digital Currency (CBDC).

This industry-first initiative enables small and medium merchants to design and launch loyalty/cashback programmes for their customers using Bank of Baroda’s “bob Merchant App”. Merchants can configure their own cashback or loyalty programme, specifying the period, percentage of cashback, and validity/expiry date.

Speaking on the launch, Shri Sanjay V Mudaliar, Executive Director, Bank of Baroda, said, “Our new ‘Merchant Loyalty/Cash Back Programme’ using Programmable CBDC is an innovative use case that empowers our small and medium-sized merchants to create tailored cashback offers, fostering greater customer engagement and retention.”

Key features of the programme include:

• Merchants can configure their own cashback or loyalty programme using the “bob Merchant app”.
• Customers who make a purchase using the bob World Digital Rupee app will receive cashback in the form of Programmable CBDC from the merchant.
• The cashback can be used by customers at the specific merchant outlet until expiry.