American Express Co. cardholders that attend the South by Southwest Interactive music festival in Austin, Texas, later this week will be able to secure merchant discounts with their cards through Foursquare Labs Inc., the location-based mobile system that rewards consumers for using its service. Media reports say the two companies are piloting the system with 60 merchants at the festival and are offering a “spend $5, save $5” promotion.
The two companies are piloting the rewards system with 60 merchants at the festival and are offering a “spend $5, save $5” promotion, according to the Wall Street Journal.
AmEx officials did not comment by PaymentsSource deadline, and Foursquare officials referred inquiries to the Journal article, in which Foursquare said it and AmEx plan to expand the program to other cities but do not yet have a date for going nationwide.
Other payments-industry players and social-media providers may follow suit with similar initiatives, one analyst suggests
“I would expect to see further integration and partnerships between the legacy payments industry and social-networking platforms like Foursquare,” Megan Bramlette, director of knowledge management for New York-based Auriemma Consulting Group, tells PaymentsSource. “This is the missing link for Foursquare; a promotion like this can actually drive sales among a savvy, first-adopter audience.”
Before the AmEx deal, quantifying incremental sales from Foursquare users was difficult, she says.
To use Foursquare, consumers “check in” to a location via a smartphone application or SMS text message. Users share their location with friends while collecting points and virtual badges.
Foursquare enables users to bookmark information about venues they want to visit and relevant suggestions about nearby venues, according to the company’s website. Merchants and brands leverage the foursquare platform by using tools to obtain, engage and retain customers and audiences, it says.
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