MasterCard integrates loyalty programs and mobile payments with new specification

MasterCard has introduced a loyalty middleware specification that aims to ease the integration of loyalty programs with mobile payment apps. The standard has been designed to work with “different loyalty schemes, different POS terminals and systems and different payment methods,” the payment network says.

Mastercard “The Loyalty middleware specification enables mobile applications to offer a seamless connection between payment, promotions and loyalty redemption. It enables consumers to select their loyalty card, the coupons/promotions they want to redeem and make a payment in a single or double tap at a contactless terminal.

“MasterCard has been working with a number of industry partners to develop and validate this standard. MasterCard plans to expand its industry engagements in the coming months and establish further collaboration with these and new industry partners.”

“We’ve all been there fumbling with a loyalty fob, coupon and payment card,” says James Anderson, executive vice president of digital payments at MasterCard. “We’ve worked closely with various industry partners to develop and implement one standard approach to enable a seamless experience in redeeming loyalty points or promotions when making mobile payments at the POS.

“Having one standard will make it easier and less costly for merchants, wallet issuers, terminal providers and others in the industry to implement these programs and focus on other elements of the customer experience.”

MasterCard showcased the implementation of loyalty and promotion redemption using Ingenico Group’s MarketPlace at the Cartes show in Paris this week. Demos were also shown with Spire Payments and PAX devices. Additional participating partners include eThor, Newland and Panasonic.

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