Alliance Data's Loyalty One Invests In Brazil's Dotz Program

Alliance Data Systems Corp. today announced that its LoyaltyOne Inc. division has acquired a 29% interest in Brazil's Dotz online loyalty marketing program. The two companies plan to expand Dotz, which Brazil-based Companhia Brasileira Del Servicios De Marketing operates, into a broad, retail-based coalition marketing program similar to Canada's Air Miles loyalty program. Banco de Brasil, Brazil's largest national bank, which counts some 78 million credit, debit and co-branded cardholders among its customers, has signed on as an anchor sponsor. The new coalition-based program will eventually enable Brazilians to earn rewards through a single loyalty program for shopping at dozens of different point-of-sale and online retailers, says Dallas-based Alliance. The program's model is Air Miles, Canada's largest loyalty marketing program, which launched in 1992 and incorporates 100 sponsors across diverse categories, including American Express Co. and MasterCard Worldwide. Some 70% of Canada's households participate in Air Miles, the company says. LoyaltyOne executives believe Dotz has the potential to become one of the world's largest loyalty programs. "We will leverage the unparalleled success we've had in Canada ... within a country that has almost six times the population of Canada (and) offers both a tremendous market and financial opportunity," Bryan Pearson, LoyaltyOne president, said in a statement.