How can mid-sized cities afford massive 20%+ cashback promotions? The primary funding source is the central government’s “Regional Revitalization Temporary Grant.” We examine how this fiscal subsidy works and how cities utilize it.
The Role of Revitalization Grants
Subsidies issued by the central government to municipal offices, allowing mayors to configure projects supporting regional business.
Why Prioritize Cashless Projects?
- High Commercial Velocity: Rather than posting cash checks, rewarding purchases forces money to circulate through local registers.
- Upgrading Rural Terminal Infrastructures: Organizing campaigns encourages cash-only independent retailers to install digital terminals.
Smart Implementation Strategies
- Focusing on Small Businesses: Excluded major department stores and national chains, steering point redemptions strictly to local retailers.
- Onboarding to Regional Wallets: Running campaigns alongside national apps, but paying premium bonuses to users downloading the municipal app.