First Data Perks Up With Rewards Program Acquisition

First Data, a payment processing company headquartered in Atlanta, Georgia, has announced the acquisition of Perka, a mobile rewards and loyalty program designed for SMBs.

Perka is a digital replacement for traditional loyalty programs, and likens itself to an “alternative to the old-fashioned paper punch card.” It’s a $35 per month cloud and location-based service that allows businesses to customize their own incentive programs for repeat customers.

The customer needs to use the Perka app to check-in to the participating merchant’s business. Then the merchant is notified if the customer is a repeat customer. They can dole out points for rewards, and deliver deals and offers directly to their customers’ mobile devices. It allows even the smallest local merchants the ability to modernize and run their own rewards programs.

First Data is the largest processor in the United States with over $1.4 trillion dollars in payments processed annually (according to 2010 figures). While it has captured the market on sheer volume, First Data’s acquisition of Perka may be its first steps towards entering the mobile market. Perka can potentially be a powerful tool in increasing sales, a valuable proposition for local businesses.

Of course, trying to fight for SMBs means entering the ring with the leaders, Square and PayPal, and while First Data is a giant in its own right, it has to make a name for itself in order to compete.