Mobile Coupons Via Credit Cards Equal Convenience, Savings, ROI

Many smartphone users are finding a new path to convenience and cost savings with coupon access through their credit/debit cards. These mobile coupons are targeted to the consumer’s location and preferences, and provide a hassle-free way to save money on the spot. For local retailers, mobile coupons are can effectively counter the consumer’s inclination to buy on-line, with instant savings on the products desired “right here, right now” at the point of sale.

CardSpring’s Application Programming Interface (API) gives developers a tool to make online applications for a credit or debit card. Each time the card is swiped, a link is created between the payment system and coupon redemption. Apps that are most appropriate for this technology include those that focus on advertising and promotions, reviews of consumer experiences and after-purchase discounts. While most mobile coupon apps require a smartphone, CardSpring’s technology does not. Rather, theirs is a secure connection between developers and the payment network.

RetailMeNot, the world’s largest on-line coupon site, uses CardSpring’s API. The company tested a mobile couponing beta in the unique setting of food trucks parked at Texas's SXSW (South by Southwest) Music Festival in Austin in March 2012. The beta was cleverly dubbed 'What the Truck?!' but company officials say that will change once the prototype is refined and offered to a wider market than just street dining.

In the SXSW test, users registered their credit cards then downloaded single-use mobile coupons from a designated mobile website. The new card-linked coupons showed the retailmenot-card-linked-coupons discount on the receipt at the point of sale. Customers experienced instant savings with a swipe of their card at the food truck.

The beta was successful enough that the company plans a roll out of its credit card-linked coupons this summer with several nation-wide retailers. Consumers simply enter their credit or debit card number and load selected discounts to their card. When purchases are made, either on-line or at a local store, the discount is automatically deducted from the total.

It is estimated by various prognosticators that by 2013 between 16.5% and 32% of all mobile phone users will redeem mobile coupons. The advantage for the retailer is the opportunity to capture consumer behavior for use in future marketing planning and placement. Merchants can market their product or service at the exact time that consumers are ready to buy. The result is increased revenue, better brand recognition and ultimately a stronger ROI. Mobile coupons also strengthen local businesses in their constant battle against on-line shopping, bringing the deals to the consumer instantly and in storefront locations through their mobile phones.

About CardSpring

CardSpring, located in Palo Alto, California, is a platform that makes it easy for developers to create applications for payment cards and terminals, bringing the power of web technology to the payment network. Please visit www.cardspring.com.