Dazbog Coffee of Denver plans to use Mocapay's mobile marketing consumer engagement platform to launch promotions and gift cards at 21 locations in Colorado and Wyoming.
Mocapay's service, which Dazbog Coffee tested in November, provides customers with a one-time-use, six-digit code it sends users via a mobile phone text message to use to pay.
No personal information is stored on the phone or in the store.
Doug Dwyre, Mocapay's president, said in an interview May 23 that roughly 30 U.S retailers use Mocapay's mobile marketing, couponing and gift card services at 150 retail locations.
The company has seven retailers with 225 locations in line for rollouts in the next few months. Though he could not name the companies, he said most are restaurants.
Some analysts say instant redemptions from mobile phones are the next important phase of loyalty card marketing and a way to kick-start complimentary mobile payment applications.
"So many more smartphones are in the hands of consumers, and soon with mobile payment options it will change the whole picture of how they can be used in the context of loyalty programs," said Kelly Hlavinka, a managing partner in Colloquy, a loyalty marketing research and consulting firm in Cincinnati.