Loyalty & Rewards

Tesco Loyalty Card Goes Contactless

The same way that credit cards and debit cards significantly reduced the amount of physical cash consumers used, it appears that smartphone apps may be doing the same thing — but for loyalty cards.

Rather than pulling out a physical loyalty card from a wallet or keychain, apps on consumers’ phones are becoming more prevalent ways of attaining loyalty reward points from retailers. Think of Starbucks’ app that allows its customers to earn stars for every purchase and then gives out a free drink or pastry when a certain level is reached.

Tesco is the latest company making news by joining this version of payments. Introducing its contactless loyalty card, Clubcard, this week Tesco’s customers will be able to add points to their cards without a keychain card.

In addition to the contactless feature, Tesco has also made updates to its loyalty Clubcard, giving customers the options to sign up in the store and giving access to vouchers at checkout.

Tesco’s Chief Customer Officer, Alessandra Bellini, commented on this new loyalty card upgrade and what it means for customers.

“Tesco Clubcard is one of the most uniquely helpful things we do, and it’s our way of saying thank you to our customers for shopping with us. We’ve listened to customers, and we’re delighted to have made Clubcard even simpler and easier to use, introducing a brand new contactless card, an upgraded Clubcard app and added to our list of partners too. Clubcard is the most rewarding loyalty scheme in the sector, and we’re looking forward to seeing how customers respond to the improvements.”

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Featured PYMNTS Study: 

With eyes on lowering costs to improving cash flow, 85 percent of U.S. firms plan to make real-time payments integral to their operations within three years. However, some firms still feel technical barriers stand in the way. In the January 2020 Making Real-Time Payments A Reality Study, PYMNTS surveyed more than 500 financial executives to examine what it will take to channel RTP interest into real-world adoption. Here’s what we learned.

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