Utility and Status: How Jupiter and Cred can compete with banks when it comes to rewards.

Product design is all about segmentation and reward. You start at the bottom, show your proof of work, and then climb the ladder. One-size-fits-all rewards don’t work anymore.

Traditionally, credit cards have focused on utility through:

  • Discounts: They save you money, but they don’t really shout “status.”
  • Rewards Points: Useful, but they lack that status appeal.
  • Lounge Access: It’s both practical and a subtle status signal.
  • Concierge Support: A bit useful, but it doesn’t show off your exclusivity.

For a while, banks thought that a shiny metal card would do the trick. And sure, it helps - your friends notice you’re using a high-end metal card, mimetic desire occurs, and they might “aspire” to get the same card one day. But without constant online promotion making it clear that the card is for a select few, that desire transfer remains a 1-1 thing. Plus, metal cards in India rarely unlock extra benefits beyond their look. Your metal HDFC Infinia card signals your salary. It signals that you spend X in a year. It gives you a few perks, but nothing that makes you want to post on social media raising awareness about the card.

Here’s the real progression:

  • Utility: Basic rewards that do the job.
  • 1-to-1 Status Signalling: Physical tokens like metal cards that hint at exclusivity.
  • Insider Club & Lottery: For top-tier users, it’s about exclusive access to events and people; for the rest: a lottery system that gives memorable, Instagram shareable experiences.

For the top tier, benefits have to be about access – the kind of access you can’t buy even with money. Think of Triton Poker: whales get in, pros are invited by whales, but no amount of skill gets you into the most exclusive events if you’re not invited by a pro. For tech bros, it might be an event as unique as a ‘Buffet dinner through auction.’ You have to get into the auction and pay to play.

Not everyone can spend enough to hit the top tier. That’s where a lottery system comes in. Imagine having a chance to meet an old-school Indian billionaire, a top VC, or a founder who could change your life. Instead of token cash back, this lottery turns rewards into events that people actually look forward to.

Neo banks, which can’t compete with the HDFCs on perks, have an opportunity here. For non-tech bros, the alternative might be a dinner at Mannat with Shahrukh Khan – a reward that far outshines a meaningless 5 Rs cash back. After all, people are more likely to share a tweet about a closed, exclusive event than brag about a few coins earned on an app. Actually the opposite happens today: people tweet about how coins earned on these credit card payment platforms are useless. Yes, I know Cred had rewards. It also does lotteries. But you can read the tweets around it.

[I’m not entirely satisfied with this post. Conversations with a few friends have revealed some gaps in my thinking. I am still sharing it because it might be an interesting framework to think about rewards.]