Loyalty and rewards

Credit card issuers have been trying to outdo each other to offer the best rewards program. And it shows, as customer satisfaction rates with many (but not all) of their banks have never been higher in a yearly J.D. Power study. But they may not last forever.

Credit card issuers are still targeting high-spending customers, who tend to be resilient to economic swings, but competition at the top is brutal and marketing costs are high. At the other end of the credit spectrum, it’s a different story.

Bank of America is readying a premium credit card that boosts the rewards customers may earn based on funds kept in savings and investment accounts at the bank.

Enticements such as rewards, loyalty points and coupons seldom face pushback as a marketing concept, but there's been recent concern that these programs are devouring potential revenue from consumers who would be willing to pay full price.

Toronto-based Glance Technologies has introduced a new version of its Glance Pay mobile payments app that uses micro-location sensing technologies along with image recognition, an approach it says is easier for merchants to adopt than QR codes.

Banks are going to great lengths to sign up the so-called mass affluent for their credit cards. How far is too far?

Starbucks has hit a mobile payments milestone, with 30% of all U.S. transactions now coming through mobile, and to smooth operations surrounding its popular Mobile Order & Pay service, the company is introducing digital-ordering specialists at its busiest stores.

Charging what people are willing to pay is an exact science, claims First Insight's Jim Shea, who contends the loyalty programs and price perks that merchants offer aren't always necessary.

The payments industry has come a long way with how it treats loyalty and rewards. Here are some of the more creative offerings to come about this year.

As contactless payment cards gain more momentum in U.K., supermarket giant Tesco wants to be sure its store loyalty card doesn't get left behind.

Like almost everything else related to Amazon's incursion into retail, the company's premium loyalty program has achieved a scale that appears ready to swallow the rest of the industry.

Citigroup is trying to gain an edge in the hotly contested category by introducing these competitive elements to its revamped Citi Prestige card.

Amazon wants you to marvel at its broad sales figures, but the details should be far more alarming to traditional retailers.

Advanced operating systems can run marketing and support services such as Apple Pay. Merchants would be well served to consider the diverse options of new terminals, writes Ben Wagner, director of solutions at Ingenico Group, North America.

Long wait times and improved marketing are a couple of reasons retailers should consider their own apps, writes André Stoorvoge, director of product marketing for payments at Rambus.

Apple's plans to display a bright blue bar on iPhone screens when an application is monitoring the user's location may feel like a threat to location-based marketing. More likely, it is an overdue wake-up call for banks to improve their communication about the benefits of location data.

Retailers should focus on creating a premium experience for a broad range of customers, writes Tom Caporaso, CEO of Clarus Commerce.

Apple's plans to display a bright blue bar on iPhone screens when an application is monitoring the user's location may feel like a threat to location-based marketing. More likely, it is an overdue wake-up call for retailers and banks to improve their communication about the benefits of location data.

Punchh is betting NFC will be widespread, and it hopes to get an edge with clients with a direct connection to Apple Pay, enabling consumers to simultaneously earn and redeem restaurant loyalty program points.

Amazon's planned acquisition of Whole Foods adds more power to an already substantial marketing program for Amazon.