Case Studies

Why use RewardPay?

Case Study 1 – Superannuation Payments

 

RewardPay enables Australian companies to make payments to their employees superannuation fund using their credit/charge card, gaining a cash flow benefit and earning points from their card provider for every dollar transferred. This is also an innovative way for companies to access an unsecured line of credit.

Stewart’s transport pay’s $32,000 in superannuation contributions per month to MTA super fund using the RewardPay payment portal. At the end of each 12 month period the benefits are calculated to be the following:

Monthly Annually
Cash flow benefit1 $186 $2,240
Rewards benefit1 32,000 points or $1,125 384,000 points or $13,500
Less RewardPay fee (ex GST) ($768) ($9,216)
Total value realised using RewardPay (pre tax) $543 $6,516

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By using RewardPay to make superannuation contributions, Stewart’s Transport achieved a realised total benefit of $6,516 annually.

1 – based on a weighted average cost of funds of 7% over a interest free lending period of 30 days.
2 – based on Membership rewards business class airfare redemption to London valued at $9,000 AUD.

Please note RewardPay does not guarantee the earn rate of your credit card, as of July 1, 2017 earn rates on some credit cards may change, please contact your card issuer for more details.

Case Study 2 – Payments to Suppliers

 

Many suppliers do not accept credit cards for the payment of goods and services. RewardPay enables any company to pay any supplier via our B2B payment portal using your credit/charge card. Card holders gain a cash flow benefit and earn reward points from their card provider for every dollar transferred. This method of payment also enables companies to take advantage of early settlement discounts offered by their suppliers using an unsecured line of interest free credit.

MCS Plastics purchases $90,000 per month of polymers from Plastics Australia pty ltd. By Using RewardPay to make their monthly payment to Plastic Australia Pty Ltd MCS Plastics are able to make payment on day 5 rather than on day 30 when they usually pay, and receive a 3% early settlement discount. At the end of each 12 month period the benefits are calculated to be the following:

Monthly Annually
Cash flow benefit1 $525 $6,300
Rewards benefit1 87,300 points
or$3,069
1,047,600 points or $36,829
Early settlement discount benefit $2,700 $32,400
Less RewardPay fee (ex GST) ($2,160) ($25,920)
Total value realised using RewardPay (pre tax) $3,900 $46,800

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By using RewardPay to make supplier payments, MCS Plastics achieved a realised total benefit of $46,800 annually.

1 – based on a weighted average cost of funds of 7% over an interest free lending period of 30 days.
2 – based on Membership rewards business class airfare redemption to London valued at $9,000 AUD.

Please note RewardPay does not guarantee the earn rate of your credit card, as of July 1, 2017 earn rates on some credit cards may change, please contact your card issuer for more details.

 
 

Case Study 2 – Payments to Suppliers

Reward pay enables companies to utilise their unsecured credit/charge card limit to make payments to sub-contractors and realise cash flow benefits, realise early settlement discounts and earn reward points from their card provider.

Foodchest Pty Ltd use Martha’s cleaning services for contract cleaning each week. The fixed monthly price is $54,000. A 5% early settlement discount is offered to customers that pay within 7 days. Foodchest use RewardPay to pay this monthly amount and take advantage of the 5% early settlement discount offered. At the end of each 12 month period the benefits are calculated to be the following:

Monthly Annually
Cash flow benefit1 $295 $3,542
Rewards benefit1 51,300 points or $1,804 615,600 points or $21,642
Early settlement discount benefit $2,700 $32,400
Less RewardPay fee (ex GST) ($1,231) ($14,774)
Total value realised using RewardPay (pre tax) $3,568 $42,809

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By using RewardPay to make sub contractor payments, Foodchest achieved a realised total benefit of $42,852 annually.

1 – based on a weighted average cost of funds of 7% over a interest free lending period of 30 days.
2 – based on Membership rewards business class airfare redemption to London valued at $9,000 AUD.

 

Please note RewardPay does not guarantee the earn rate of your credit card, as of July 1, 2017 earn rates on some credit cards may change, please contact your card issuer for more details.