Fiserv Inc. is adding Cardlytics Inc.'s merchant-funded rewards program to its online banking services alongside Fiserv's UChoose Rewards credit and debit rewards program.
Fiserv, of Brookfield, Wis., has integrated Cardlytics' rewards program into its Corillian Online service for financial institutions, which may opt to offer it to their customers with both checking and card accounts.
The deal was announced April 4.
Banks pay nothing to provide the service or the rewards, which merchants pay for based on cardholder use. But banks do incur some initial costs to set up the Cardlytics program through Fiserv's systems, a Fiserv spokesman said in an interview.
Implementation costs will vary based on individual banks' systems, he said.
Customers redeem Cardlytics rewards by going to their online banking site and clicking on offers presented within their transaction history.
They then may make purchases at the designated merchant with their qualified debit, credit or prepaid card.
Banks deposit the merchant-funded rewards into customers' accounts within 60 days of the purchase.
Banks that offer Cardlytics' rewards may earn revenue based on their number of active users of the service, the companies said.
Cardlytics, of Norcross, Ga., within the past several months has announced partnerships with several banks and bank service providers as competition within the merchant-funded rewards arena has gained momentum.
Plans call for integrating Cardlytics into Fiserv's Mobile Money mobile banking service, Fiserv said.
Fiserv continues to offer banks its proprietary UChoose rewards program, which enables banks to provide customers with points-based value redeemable for cash funded by merchants, financial institutions or a combination of both, the Fiserv spokesman said.
