As evidenced by the Google acquisition of startup Punchd last week, the mobile loyalty space is heating up and a Vancouver startup wants a piece of the action. RewardLoop - formerly known as QR Loyalty - has been in the mobile loyalty space for over a year, but has been flying under the radar until now.
Today RewardLoop announced a universal POS (point-of-sale) adaptor called RewardLoop Connect.
With over 300 different point-of-sale platforms in use today, fragmentation makes it nearly impossible to deploy a universal transaction-based mobile loyalty program. Rather than integrating with every POS, RewardLoop Connect's Universal POS Adaptor leverages the common thread that connects most POS systems: The print data stream language.
Epson and Epson-compatible receipt printers comprise an estimated 85% of the global receipt printer market (who would have guessed that?). The RewardLoop Connect device intercepts the print data stream, interprets the content, and turns it into a secure 1-time-use QR code that is added to bill footers for earning loyalty rewards.
By adding the single-use QR code coupon to the receipt, the system is truly transaction-based rather than triggered by a ‘check-in’. And it's convenient for the consumer as well as it is a card-less solution with no impact on the thickness of your wallet.
From the retailers perspective, there is no Internet connection required. For the secure validation and redemption of earned rewards, a secure redemption QR code is printed in which a cryptographic challenge is embedded. This challenge rides the Internet connection of the user’s mobile device and is validated via RewardLoop’s cloud hosted application.
RewardLoop is definitely on to something big here and time will tell if they're able to disrupt this lucrative market.
RewardLoop won the Most Promising Startup award at the 2011 Technology Impact awards last month. They also recently closed a seed financing round led by W Media Ventures' Boris Wertz with participation from a handful of prominent executives from leading online and offline retailers.
Disclosure: Boris Wertz is an investor in Techvibes Media Inc.