Card-Linked Offers and Loyalty up 50 Percent, Says CardLinx Survey

Card-linking offers and loyalty programs have seen rapid growth as consumers embrace technology and smartphones, says the 2016 Annual Card-Linking Industry Survey conducted by the not-for-profit CardLinx Association.

According to the study, more than 50 percent of the respondents said card-linking transactions have increased by at least 50 percent in the past 12 months—up from 10 percent in last year’s survey.

With card-linking, consumers are able to link their existing credit cards or debit cards to mobile wallets, loyalty programs or digital coupons.

When they pay with their registered card or mobile wallet, the loyalty benefit or discount is applied automatically eliminating the need to use a digital coupon, paper coupon, promotion code or QR code.

More than 60 percent of respondents also said that card-linking will likely develop into a $10 billion revenue industry.

Restaurants, department stores and clothing/apparel companies were the early adopters of card-linking, the study found.

Silvio Tavares, CardLinx President and CEO, commented, “Card-linking has a network effect and it is accelerating. Merchants and brands have poured more money into marketing and social media campaigns for card-linking, attracting more consumers.

This in turn is bringing more payments and fintech companies into the industry that are developing new, innovative platforms to widen card-linking’s appeal to even more consumers.”

Meanwhile, CardLinx will be holding two forums in April. Its first Asia Forum in Seoul, South Korea on April 14 will focus on digital commerce featuring technology giants such as MasterCard, while the New York forum on April 25 will tackle card-linking loyalty programs.