The £/€10 Min. Anchor and Revenue-Driven Utilities: Safeguarding PLU Rewards

We explain how our utilities and revenue system work, and the steps we’re taking to keep the ecosystem valuable and sustainable in the long run.

Who Pays for Gift Cards and Other Utilities?

1) How We Fund Utilities

All utilities (except PlutusGifts) fund themselves and generate revenue through several sources:

• PlutusSwap Web2: We earn a small spread from service fees after covering third-party liquidity provision and related costs.
• PlutusSwap Web3: Set to launch in 2025, we will earn a small spread from liquidity provider fees collected by our customers using the Pool & Earn feature.
• PlutusMiles: We add a small spread on each Mile, along with a fair and balanced fee.
• PlutusTravel: We earn up to 20% on travel bookings and pass cashback rates to customers while charging a small booking fee.
• PlutusCashback: We earn referral fees for purchases made with partners with the Plutus Card, passing it on as various cashback rates to customers.
• PlutusMerch: Going live in 2025, products will be priced to maintain a fair balance between generating revenue and appealing to customers.

2) How We Fund PlutusGifts

Initially, the cost of growth utilities like PlutusGift is covered by Plutus' net earnings through several revenue sources:

• Subscription Fees: Part of the subscription fee helps fund growth features.
• Transaction Revenue: A small percentage of each £/€1 spent with the Plutus card.
• Perk Partnerships: Partnerships with brands bring in extra revenue.
• Utility Revenue: All redemption features (except PlutusGifts) generate revenue.

3) How We Cover PlutusGifts’ Growth

During the initial launch stages after 30th Nov, Plutus covers the costs of PlutusGifts. As the ecosystem grows, our dynamic fee structure lowers over time, ensuring a healthier system with minimal fees. This approach keeps the feature sustainable and appealing to customers.

Join our community feedback session on 14:00 GMT, 21 November to help shape the fee structure.‍

Why Redemption Value Stability Matters for Plutus and Cardholders

1) Historical Reliance on External Factors

The original system, designed in 2015, relied on valuations influenced by external conditions rather than aligning with tangible in-app features. Emotional reactions and narratives driving these external conditions often impacted the perceived and actual value of PLU rewards earned in-app, which, in turn, affected sustainability and negatively impacted our customers.

2) Introducing Anchored Values

In Q1 2025, Plutus will anchor both in-app redemption (except for PlutusSwap) and emission values to a minimum of £10, based on the tangible benefits offered in-app. This mechanism ensures stability by providing a predictable and consistent minimum value for PLU rewards on features like PlutusMiles & PlutusTravel, regardless of external conditions.

3) Proven Model from Loyalty Programmes

Drawing inspiration from established loyalty systems like Air Miles, which regulate both redemption and emission values in-app, Plutus employs a similar model that ensures rewards maintain their intrinsic value. For example, a Mile worth £0.10 at the issuer cannot be devalued by disruptive external factors.

4) Ensuring Ecosystem Resilience

By setting a minimum floor value with no maximum threshold, Plutus prevents rewards from being undervalued, supports growth, and maintains a robust system that remains unaffected by adverse conditions, ensuring long-term sustainability and trust.

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