Visa Europe is to move into the card linked offers business through a partnership with US-based Edo Interactive.
Visa says the partnership will launch a "targeted CLO cashback proposition" in Europe, starting with a pilot at the end of this year and launching at scale in 2015 in the UK as the first market. Cardholders who opt-in to the service will just need to pay with a Visa card to get relevant offers from leading brands based on their previous spending behaviour.
Crispin Rogers, director targeted marketing solutions at Visa Europe, says: "The days of the one size fits all approach to advertising and customer marketing are over. Consumers want a personalised experience and rewards that mirror their brand and product preferences. With one pound in every three spent on a Visa card in the UK, we can provide actionable insight that marketers need to reward those preferences.
The venture will compete with UK-based startup Birdback, which links discounts, cashback and loyalty programmes directly to customers' payment cards for offline spending on the high street. The company, which attracted a £2.4 million funding round in February, recently announced plans to extend its service to the US and Brazil
Edo already works with over 200 banks and more than 1000 retailers in the US in this field.