Royal Bank of Canada has agreed to buy Credit Systems International Inc., a marketing company that specializes in loyalty programs, for about $10.25 million.

CSI, based in Burnaby, British Columbia, sells software that helps merchants offer rewards points, electronic coupons, and electronic gift certificates.

"Retailers are demanding more functionality from the existing payment infrastructure," said Mark Tonnesen, executive vice president of card products and point of sale for Royal Bank. "They want to build stronger relationships by providing customers with instant gratification from their loyalty programs."

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