# Benefit Allocation Service
source: https://developer.mastercard.com/benefit-allocations-service/product/benefit-allocation-service/index.md

### Overview {#overview}

##### Move beyond batch benefit changes. Personalize cardholder benefits in real time. {#move-beyond-batch-benefit-changes-personalize-cardholder-benefits-in-real-time}

Benefit Allocation Service gives banks and card issuers an API to manage cardholder benefits across the card lifecycle. Replace day-to-day legacy batch updates with real-time operations to assign, replace, update, or cancel benefits, freeze or unfreeze benefit access, and transfer benefits when a card is replaced. Batch processing can still support mass data loads during onboarding.

Benefit Allocation Service lets issuers tailor benefits by customer segment or assign benefit bundles directly to a card. The API uses OAuth 1.0a request signing and JWE payload encryption. Mutual TLS (mTLS) access is also available for issuers using the [mTLS API documentation](https://developer.mastercard.com/benefit-allocations-service/benefit-allocation-service-mtls/documentation/index.md). See [API Basics](https://developer.mastercard.com/benefit-allocations-service/documentation/api-basics/index.md) for authentication, encryption, and environment requirements.

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### Benefits {#benefits}

##### Allocate benefits and services to targeted customer profiles {#allocate-benefits-and-services-to-targeted-customer-profiles}

Benefit Allocation Service lets issuers tailor cardholder value propositions (CVPs) to customer needs without building complex benefit-management solutions.
![Drives differentiation](https://static.developer.mastercard.com/content/benefit-allocations-service/uploads/drives_differentiation.svg)

###### Drives differentiation {#drives-differentiation}

Drive differentiation by creating and allocating different and engaging cardholder value propositions.
![Targeted propositions](https://static.developer.mastercard.com/content/benefit-allocations-service/uploads/targeted_propositions.svg)

###### Targeted propositions {#targeted-propositions}

Identify and apply specific benefit(s) or segmented benefit(s) instead of the same benefits for all cardholders. Allocation of distinct benefits and services fosters preference, engagement, loyalty and increases spend for your portfolio.
![Real-time updates](https://static.developer.mastercard.com/content/benefit-allocations-service/uploads/realtime_updates.svg)

###### Real-time updates {#real-time-updates}

For segmented portfolios, customers can allocate cardholders to segments real time, while Mastercard manages any card value proposition changes and seamlessly services cardholders with personalized and relevant benefits. Customers can also allocate individual benefits to cardholders.

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### How it works {#how-it-works}

##### Allows adaptability of benefits based on cardholder's needs and preferences {#allows-adaptability-of-benefits-based-on-cardholders-needs-and-preferences}

Benefit Allocation Service allows issuers to establish segments and benefit bundles, assign cardholders to a segment or individual bundles, and submit those assignments to Mastercard through the API.
![Step 1](https://static.developer.mastercard.com/content/benefit-allocations-service/uploads/step1.svg)

###### Step 1 {#step-1}

Customer selects the benefits they would like to provide their cardholders and defines the Benefit Bundles for Mastercard to create new or updated customer value propositions
![Step 2](https://static.developer.mastercard.com/content/benefit-allocations-service/uploads/step2_2.svg)

###### Step 2 {#step-2}

Mastercard configures Global Benefits Platform with the Bundles defined by the customer
![Step 3](https://static.developer.mastercard.com/content/benefit-allocations-service/uploads/step3.svg)

###### Step 3 {#step-3}

Customer segments their database and allocates the benefit bundle(s) to the relevant cardholder segment or identifies individual benefits available for cardholders
![Step 4](https://static.developer.mastercard.com/content/benefit-allocations-service/uploads/step4.svg)

###### Step 4 {#step-4}

Mastercard updates the consumer's card with the new customer value proposition
![Step 5](https://static.developer.mastercard.com/content/benefit-allocations-service/uploads/step5.svg)

###### Step 5 {#step-5}

Benefits information can be retrieved from Mastercard APIs to support eligibility, presentation, and relevant offers for cardholders.

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### Why use it {#why-use-it}

##### Customer demand and consumer needs are driving the need for brands to connect with their cardholders in a deeper way {#customer-demand-and-consumer-needs-are-driving-the-need-for-brands-to-connect-with-their-cardholders-in-a-deeper-way}

Benefit Allocation Service gives issuers flexibility to tailor card value propositions to cardholder needs without developing complex solutions.

### 88%

of banking consumers say it is important that their bank personalizes products and services based on their needs and behaviors

American Banker 2021

### 64%

Consumers are more likely to do business with a brand that aligns itself with something they're passionate about

Kantor Study 2021

### 78%

of banks are expanding their personalization capabilities

Forbes, 2020

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### Use cases {#use-cases}

##### Adapt benefits to cardholders' preferences {#adapt-benefits-to-cardholders-preferences}

Mastercard, customer, and cardholder needs can change. Benefit Allocation Service makes these changes easier to deliver.
![Segment your portfolio](https://static.developer.mastercard.com/content/benefit-allocations-service/uploads/segment_your_portfolio.svg)

###### Segment your portfolio {#segment-your-portfolio}

Enable issuer differentiation, offering consumer portfolio segmentation and the presentment of different cardholder value propositions to segmented card
![Create new customer value propositions](https://static.developer.mastercard.com/content/benefit-allocations-service/uploads/create_new_customer_value_propositions.svg)

###### Create new customer value propositions {#create-new-customer-value-propositions}

Allow customers to define a number of propositions which can be allocated to a specific segmented cardholder portfolio
![Enhance benefit bundles](https://static.developer.mastercard.com/content/benefit-allocations-service/uploads/enhance_benefit_bundles.svg)

###### Enhance benefit bundles {#enhance-benefit-bundles}

Customers can easily and rapidly request updates to benefit bundles and allocate these changed bundles to consumer cards in real-time

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### Resources {#resources}

Benefit Allocation Services (OAuth)

The Benefit Allocation Service ensures all accounts receive the benefit assignment related to the Card Product Type or Benefit bundle you decide. Mastercard now enables issuers to deliver segmented value propositions to targeted customer profiles. Accessing the Benefit Allocation Service API involves performing authentication and authorization for client applications through OAuth 1.0a.

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**Used By** Issuers **Regions** Global **Supports** ![mastercard card](https://developer.mastercard.com/img/card_mastercard.svg) Benefit Allocation Service (mTLS)

Benefit Allocation Service enables issuers to deliver segmented value propositions to targeted cardholder profiles. Accessing the API requires client authentication and authorization through mutual TLS (mTLS).

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**Used By** Issuers **Regions** Global **Supports** ![mastercard card](https://developer.mastercard.com/img/card_mastercard.svg)

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