Discover Financial Services has invested in Buzz Points as part of a $19 million funding round for the loyalty rewards outfit.
The investment - terms of which have not been disclosed - comes off the back of a relationship between Buzz Points and Discover-owned interbank electronic funds transfer network Pulse Network.
Since 2012, Pulse and Buzz Points have been working on a loyalty programme for financial institutions to encourage their customers to shop locally and support local merchants. Buzz Points has processed more than $1.8 billion in transactions authorised by financial institutions in the programme.
Dave Schneider, president, Pulse, says: "After evaluating several debit card loyalty programs, Buzz Points emerged as a leader and has demonstrated its value to issuers, consumers and merchants. The investment enhances our efforts to leverage Buzz Points' technology throughout the network, while giving our issuers an outstanding merchant-centered loyalty program."
The funding round was led by Lead Edge Ventures, along with existing investors including KEC Ventures and Greycroft Ventures. Buzz Points says it will use the money to bring more banks and credit unions into its programme and expand its marketing platform for local businesses.