Visa has always strived to innovate on developing technologies and trends in the payments industry. In 2018, Visa noticed a market gap that, by all accounts, should have been addressed by several innovative technologies in the past decade.
Merchants such as grocers, fashion retailers, and other big box stores tend to offer very strong loyalty incentives in the way of programs and memberships. These programs often provide immense value in the way of discounts and sales essentially for free. However, they require the customer to either carry around a membership card or enter their phone number for every purchase.
To make matters worse, this paradigm presents an inherent flaw: lack of transparency into a customer’s loyalty points balance. This makes it extremely difficult for customers to use loyalty points for purchases at eligible locations.
If customers are unable to spend their rewards points, they are then incentivized to frequent a competitor’s establishment– harming the vendor’s business as well as relegating the customer’s loyalty points to a digital waste bin.
Visa sought to remedy the problem by consolidating all of the customer’s siloed loyalty programs (or loyalty cards) onto a single nexus: their payment card. They would create an open and centralized platform: LoyaltyLink.