Andrii N.
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Jun 19, 2025
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9 min read
For fintech apps, getting users in the door is no longer the hard part. It's what happens next that makes or breaks the business.
A user installs your app, completes basic onboarding, maybe even passes KYC, and then vanishes. No top-up, no card activation, no quality referrals. Without a next step and clear motivation to guide them, no real value is created, and the opportunity for long-term revenue quietly slips away.
This isn’t unique to your app. Industry benchmarks show day‑1 retention for fintech apps hovers around 30%, dropping to roughly 17–18% by day 7, and under 12% by day 30 (Statista). In other words, more than 80% of users are invisible after just one month.
Often, the challenge isn't the product's depth or UI; it’s behavioral inertia. Users leave because there’s no system to guide them toward meaningful next steps, no pacing for exploration, and no feedback loops. Many important features, like setting up auto-savings, using virtual cards, or referring friends, simply never become habits. Without reinforcement or timely motivation, users tend to disengage before they establish engagement with the product.
This is where loyalty becomes useful. Not just as a rewards tab or occasional perk, but as a way to keep users engaged and active beyond the first session. A good loyalty system helps structure the post-onboarding experience and encourages users to come back and complete high-value actions over time. And unlike heavy discounting or paid re-engagement campaigns, it’s often more cost-effective and easier to scale.
So, how do you turn drop-off moments into ongoing momentum? Here are seven proven mechanics that fintech teams are using to effectively drive growth.
Convert signups to next steps with rewarding onboarding
Most users complete basic onboarding with no sense of what to do next. While your product may offer real value, it needs to feel accessible immediately. If there's no direction after KYC, the drop-off begins.
Small, actionable next steps framed as “do this, get that” help anchor users in the experience and give them a reason to explore.
Robinhood rewards new users with free stock (worth $5–$200) after completing KYC and funding their account. This loyalty reward encourages users to finish onboarding and start trading, boosting activation and retention.
Examples:
“Top up your wallet within 24 hours of signup” → “Earn 50 points"
Turn signups into the first meaningful action while motivation is high“Set your first savings goal and complete one deposit” → “Get 120 points”
Encourage users to try core features early and begin building financial habits
Boost verified referrals
Referral is often positioned as “low-cost growth.” But done wrong, it leads to fake signups, shallow engagement, and wasted rewards.
Smart referrals are structured; they only reward users when referred friends complete specific milestones, like KYC or a set of transactions.
Common approach | Challenge | Alternative |
|---|---|---|
Share a referral code, get a flat reward | Attracts bots, fake signups, or low-quality leads | Add referral rules: only reward verified referrals who complete high-impact product actions (like card top-ups) |
One-time bonuses with no validation | Hard to track the actual conversion value | Tier rewards based on referred user behavior |
Revolut offers cash rewards to both referrers and referees, with bonuses confirmed only after the referred friend makes three card payments. This creates a strong incentive to onboard active users, driving a 700% increase in customer acquisition. Limited-time offers and regular reminders add urgency, boosting engagement.
Lunch Money rewards users with 10% account credit for every invoice paid by a referred friend, while the friend receives one free month after their trial. This ongoing reward encourages users to refer long-term active subscribers.
Examples:
“Refer 2 friends who pass KYC” → “Earn 500 points”
Reward verified referrals and encourage quality over quantity from day one.“Referral bonus: Invite 5 verified users” → “Unlock early access to premium features”
Create urgency and excitement while driving trusted user acquisition.
Drive deeper feature adoption through lightweight nudges
Most fintech apps have a lot going on: savings tools, budgeting, transfers, even investments. But feature richness means little if users don’t try them. The challenge isn’t providing useful features; it’s introducing them gradually, with clear value.
Use small tasks and incentives to encourage discovery, especially for features that drive retention or revenue.
Examples:
“Try your budgeting tool and complete 3 entries” → “Earn 40 points”
Help users discover money management tools and increase likelihood of repeat interaction“Create a savings jar and deposit at least once this week” → “Earn 60 points”
Ensure early engagement with personal savings and reinforce value through follow-up action
These moments should not feel like tutorials but gentle nudges within the flow.
Build usage habits with streak-based progression
Getting users to act once is good. Getting them to return regularly by creating retention loops is better.
When fintech apps introduce soft routines like check-ins, streaks, or timed goals, they move from “utility” to “habit.” And habit is a cornerstone of LTV.
Behavior | Risk | Streak engagement value |
|---|---|---|
Infrequent or irregular usage | Users forget the product exists | Incentivize regular returns (e.g. daily login) |
Drop-off after first use | No momentum to build habits | Build consistency around app usage |
Examples:
“Log in 5 days in a row” → “Earn a streak bonus of 50 points”
Build a routine through lightweight daily interaction and keep your app top of mind.“Use your card every day this week” → “Unlock a 2× reward booster on your next purchase” Incentivize consistent card usage and build habits around real-world transactions.
Re-engage lapsed users with seasonal and campaign-based incentives
Sometimes users just need a reason to return. Seasonal or campaign-based mechanics create relevance without needing new features. They can help build urgency, run on a clear timeline, and give your product a voice beyond core functions.
Examples:
“Black Friday Savings Week: complete five deposits” → “Earn 200 points” Drive short-term deposit activity during key seasonal moments and reward focused participation.
“July Challenge: transact in 3 new categories” → “Earn 100 points and unlock a limited-time offer”
Encourage spending diversity and reactivation during slower seasonal periods.
These campaigns act like growth pulses. They give you room to highlight new features, encourage re-use, and reward usage in ways that feel timely.
Increase organic reach by incentivizing user sharing
Users are far more likely to share brand mentions when there’s something meaningful in it for them—recognition, status, or a simple reward. Structured social engagement gives them the nudge they need to act.
Examples:
“Post your 5‑day streak on Instagram” → “Earn 40 points”
Encourages users to share small achievements, building visibility without relying on paid ads.“Record your goal-setting journey for TikTok” → “Earn $150 cash bonus and AirPods”
Turns user stories into brand content—while spotlighting commitment and creativity.
Link loyalty directly to revenue-driving behaviors
Not all engagement is created equal. Some actions—like card usage, top-ups, or recurring deposits—have a direct impact on your bottom line.
If your goal is to increase usage or drive wallet activity, reward users for actions that actually generate business outcomes.
Revolut’s RevPoints loyalty program rewards users for everyday spending and useful actions like card purchases. These points can be redeemed for airline miles, travel discounts, and shopping rewards, turning routine financial actions into valuable perks that boost loyalty and retention.
Examples:
“Spend €100 this week” → “Earn 2% back in loyalty points”
Drive short-term transaction volume and create a clear incentive for weekly wallet activity.“Use your card in 5 different categories” → “Earn 100 points”
Encourage diverse usage across spending types and build stronger payment habits.
Web3 loyalty: scale engagement without overspending
Traditional (Web2) incentives are familiar and proven, but not always cost-efficient. Cashback and rigid point systems all share one flaw: they don’t adapt to actual user value. Most fintechs still allocate 1–5% of revenue to reward programs (360insights), spend $10–$100 per referral, and often burn 5–15% of their total marketing budget doing so (Deloitte).
That doesn’t include the hidden infrastructure: licensing loyalty software ($1k–$300k/year), or launching programs with external support—PR, creative, paid media—which can run another $200k–$500k (Gartner).
This creates a mismatch between high spending and low sustainability. Upfront fixed rewards assume that all users provide equal value, but in reality, most do not. That's why a more controlled, behavior-based approach—where rewards are granted only after specific actions are taken and engagement is proven —makes more financial sense as you scale.
Web3 loyalty can solve this. You only issue tokens when users deliver on behavior that matters.
Similarly, you control how tokens are used: access, bonuses, or gated perks.
Examples:
Convert earned points into tokens after a successful quarter
Allow users to stake tokens to unlock VIP features
Launch seasonal token airdrops tied to community performance
Suggested approach? Start simple with Web2 mechanics. Shift to Web3 loyalty when you want to control loyalty spend, extend ownership, and introduce new incentives.
Ready to explore what loyalty could look like in your fintech app?
Improving onboarding, increasing feature usage, or reducing churn post-activation all become easier with the right loyalty structure and tools, helping you move faster and with less guesswork.
We offer tailored consultations for fintech teams looking to build engagement systems that fit their user journey, regulatory needs, and growth model. Nothing off-the-shelf, every recommendation is shaped around your app’s features, audience, and lifecycle stage.
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