Verifone and FIS, the payment companies, announced Wednesday (Jan. 11) they are collaborating to enable consumers to pay with loyalty points that are linked to credit or debit cards at the point of sale.
In a press release, the companies said Verifone developed an application dubbed Verifone Points Redemption, which connects the FIS Premium Payback Network to provide a secure and quick way to access third-party loyalty programs. Merchants can download the free app on their device. Eligible cardholders would need to swipe, dip or tap their card at participating retailers to pay with the points they have accumulated. The connection between Verifone and FIS is being powered by Modo’s COIN operated Digital Payments Hub, which connects new digital experiences with payment systems round the world.
“We are helping merchants and consumers realize the value of loyalty programs by bringing points redemption to the shopping experience right where it counts — at the checkout,” said Glen Robson, executive vice president, Head of Verifone Solutions, in the press release. “With FIS’ loyalty solution accessible through the cloud on our devices, merchants have a simple way to enhance the checkout experience by offering their customers immediate savings on in-store purchases using points.”
According to the companies, based on research each year up to $16 billion in loyalty points don’t get used. FIS’ Premium Payback has shown the ability to combat that, however. In fact, nearly one of five Premium Payback users have said they selected merchants based on the ability to use their reward points, the companies said.
“Today’s consumers have been digitally empowered and expect tomorrow’s payment and rewards capabilities today,” said Bruce Lowthers, executive vice president, FIS Global Retail Payments. “The single integration point to brick-and-mortar retailers uniquely helps loyalty programs increase member touch points, while our relationship with Verifone expands the reach to bring scalable loyalty points redemption to many more consumers.” When consumers present a loyalty linked card payment on a Verifone device it will prompt them automatically when enough points are available to pay for their items.