MasterCard bids to develop tech spec for mobile loyalty integration

MasterCard bids to develop tech spec for mobile loyalty integration

MasterCard is bidding to develop a standard technical specification to ease the integration of retailer loyalty programmes with bank-issued mobile payments apps.

While online redemption of offers is commonplace for consumers, the industry is just starting to deliver the same functionality at point-of-sale checkout via a mobile app.

MasterCard says its loyalty middleware specification enables mobile applications to offer a seamless connection between payment, promotions and reward redemption. It enables consumers to select their loyalty card, the coupons/promotions they want to redeem, and make a payment in a single or double tap at a contactless terminal.

“We’ve all been there, fumbling with a loyalty fob, coupon and payment card. We’ve worked closely with various industry partners to develop and implement one standard approach to enable a seamless experience in redeeming loyalty points or promotions when making mobile payments at the point of sale,” says James Anderson, executive vice president, digital payments, MasterCard. “Having one standard will make it easier and less costly for merchants, wallet issuers, terminal providers and others in the industry to implement these programmes and focus on other elements of the customer experience.”

The card scheme is demonstrating the first fruits of the initiaitve at the Cartes event in Paris with an implementation of loyalty and promotion redemption using Ingenico Group’s MarketPlace. Demos are also being shown with Spire Payments and PAX devices. Additional industry partners participating in this effort include eThor, Newland and Panasonic.

Anderson says MasterCard will extend the programme to other industry partners in the coming months.

Comments: (1)

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune 18 November, 2015, 12:42Be the first to give this comment the thumbs up 0 likes

The new app that MasterCard is spec’cing "enables consumers to select their loyalty card, the coupons/promotions they want to redeem, and make a payment in a single or double tap at a contactless terminal." Translation: This app

  • won't automatically select the loyalty card, which Apple iOS Passbook app has been doing for 3 years;
  • won't automatically select the payment card, which Apple Pay has been doing for 1 year.

Nice. People can stop fumbling with "loyalty fob, coupon and payment card" and start fumbling with the loyalty, coupon and payment card tabs in the new MasterCard app. For every banking app like HDFC Bank PayZapp that eliminates friction, there comes along a MasterCard app (or ICICI Bank eftCheques app or SBI Buddy app) that takes friction to new heights.

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