Digital loyalty cards are on the rise and one of the industry leaders, Stocard, is set to transform the sector by launching a payment feature in the New Year.
Mobile wallet firm Stocard, whose app allows consumers to store loyalty cards on their phone, is part of a growing trend towards digital loyalty that is shaking-up the sector.
The app is transforming the mobile wallet space by allowing consumers to have all of their loyalty cards in one place, and has recently flagged plans to launch a payment feature in the second half of 2019. The feature will see the app featuring a digital credit card, which will automatically load loyalty points onto cards as part of the checkout process.
Radinck Van Vollenhoven, managing director of Stocard told Retailbiz that they are currently testing the payment integration in Europe.
“We’re digitising a payment card into the app,” he said.
“We’re seeing people want a solution to store their cards. People like having a consolidated solution with convenience and ease of use.”
Just months ago, the mobile wallet firm landed $20 million from Macquarie Capital and this month the firm crossed the 30 million user mark, as it continues to add 100,000 new shoppers a month.
Mr Van Vollenhoven said that it’s the convenience factor of the loyalty app which makes it so popular among consumers. But it’s also the global shift away from plastic and towards more eco-friendly solutions that is driving the change.
“It’s the general awareness of plastic and the environment. Larger retailers are shifting away from plastic, and consumers are as well,” he said.
But the rise of digital wallets isn’t just benefiting consumers. Mr Van Vollenhoven says that the proliferation of mobile wallets presents big opportunities for retailers to build loyalty with their consumers by leveraging data.
“The rise of digital is making it easier for customers to obtain information about retailers and products they’re interested in, so it’s shifting the power back into the hands of consumers.”
And according to Mr Van Vollenhoven, the expansion won’t stop here, with plans for Stocard to open offices in the United States and Russia.
“We just opened a Canadian office and raised $20 million from Macquarie Capital. Now we’re looking at the US market, and also markets in east Europe and Russia.”