American Express Co.’s plans to test an application program interface that connects its cardholders with social media giant Foursquare Labs Inc. creates a “powerful combination of digital behavior and spending behavior,” David Wolf, AmEx vice president of global marketing capabilities, tells PaymentsSource.
Called Smart Offer API, the application interface enable two platforms, such as the AmEx payment platform and the Foursquare application, to share information, Wolf says.
AmEx is piloting Smart Offer at the South By Southwest music and technology festival in Austin, Texas, from March 11 through March 15 (
Participants receive a $5 statement credit when spending $5 at 60 participating Austin-area merchants, including large stores such as Whole Foods and small, mom-and-pop stores around the festival, says Wolf.
AmEx is moving with the times, Wolf says.
“At AmEx, we need to go where our cardmembers and merchants are, and more and more are using social media apps like Foursquare,” he says. “We are uniquely positioned for this space because of our closed-loop information on our cardholders, merchants and transactions. We built the [application interface] for Foursquare to create a unique, customized American Express experience with the application.”
One major selling point for Smart Offer is that cardholders do not need to scan a coupon or bar code or submit a code to a checkout person to get the rewards. The system automatically credits the cardholder’s AmEx statement once he or she uses the Foursquare application to check in to the merchant, says Wolf.
“ When cardholders use AmEx’s Smart Offer API, we can track the closed-loop transaction–we know you’re at a participating merchant, and we know you that spend the minimum $5.”
The system then sends a message notifying the cardholder of a $5 statement credit. “There’s no talking to a cashier, and a merchant doesn’t even have to educate the staff,” says Wolf. “It is seamless.”
AmEx is funding the rewards for the pilot, Wolf notes. He did not say who would fund future promotions.
AmEx is deploying street crews around Austin to promote the Smart Offer software at and around the festival, and all 60 merchants have received point-of-purchase promotional signage, says Wolf.
“People come to this festival to try out new technology, so we’re expecting a lot of buzz,” he says.
AmEx has not made plans to expand the Smart Offer program to other locations, but because AmEx and Foursquare are global they eventually will roll it out on a broader scale, Wolf says he says.
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