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Loyalty is a force multiplier for merchants. If you can unlock loyalty, you can pave the way to more revenue, higher customer lifetime value, and lasting brand equity.

The challenge is that the current methods merchants use to capture and reward loyalty are outdated, fragmented, and filled with friction.

Traditional loyalty solutions include standalone mobile apps, punch cards, and technologies that require privacy-wary consumers to register with their personal information. But in a payments landscape that's been redefined by contactless, mobile, and wearable innovations, these solutions can’t keep up.
Merchants need embedded loyalty tools that make it seamless for customers to participate and for the business to capture valuable first-party data.

Through their partnership, Verifone and Payment Loyalty make rewards frictionless by embedding benefits directly into the most trusted touchpoint in retail: the payment terminal.

The Challenge of Loyalty Adoption

Merchants have had longstanding challenges executing loyalty programs.

Nearly half of merchants (47%) cite tailoring loyalty programs to different customer segments as their top challenge this year. This figure isn’t surprising considering adoption and engagement with retail loyalty programs is declining. While 51% of consumers participate in loyalty programs, they only actively use about 50% of the ones they've joined.

Adoption is likely dwindling because it’s too cumbersome for consumers to earn and claim loyalty benefits. They have to download an app, provide their telephone number, or wait for an offer to appear on their phone or in their email.

“There’s too much friction in the experience. We're all so much less tolerant of friction in every area of our lives and in-store payments are exactly the same,” says Tom Holt, Co-Founder of Payment Loyalty, a leading provider of embedded loyalty solutions.  

Payment Loyalty and Verifone’s integration addresses this challenge, making loyalty frictionless, instant, and universal. Payment Loyalty is fully integrated into the Verifone platform, a solution trusted by both the world’s leading retailers and independent local businesses.

Verifone and Payment Loyalty: Making Loyalty Seamless at Checkout

With Verifone and Payment Loyalty, the loyalty experience happens right at the Verifone smart terminal. When a customer goes to check out, the system recognizes them using a secure encrypted version of their payment method, Holt says. Merchants can structure their offers and the loyalty experience in whatever way they choose. 

For example, a customer may see a pop-up on the Verifone smart terminal with an offer for 20% off their next purchase. They can opt in with a single click—no download, registration, or employee upselling required. “That one click leads to 70-90% of customers opting in,” Holt says.

“Embedding loyalty seamlessly into the payment process eliminates most of the cost associated with recognizing and rewarding great customers—no apps to develop and maintain and no huge marketing cost,” he adds. “This democratizes loyalty, allowing businesses of all sizes to cost effectively recognize and reward their most valuable customers.”

Merchants don’t need additional hardware or any complex software configuration to access this integration. If they’re already running Verifone smart terminals, activating Payment Loyalty is as simple as turning on a feature, which delivers immediate value without disruption or added implementation costs.

Rich Carter, Co-Founder of Payment Loyalty, says 80% of the world’s transactions still happen in store. Bringing loyalty benefits to the point of sale within brick-and-mortar helps merchants enhance their loyalty programs and improve overall business performance.  

“If you've got a device that interacts with 80% of your customers, not using it as a means to grow and promote your business almost seems like a real error,” Carter says. “We're now empowering the device that has the highest degree of penetration with your customer base and using that to grow your business.”

High-Impact Loyalty Experience That Delivers ROI

Verifone and Payment Loyalty make loyalty a standard part of the payment process. Merchants can use the joint solution to drive loyalty using three powerful features:

Cumulative Loyalty

Rather than a physical punch card, merchants can use a payment-embedded version of the punch card and create simple campaigns that reward customers for multiple purchases. 

They can configure minimum spend conditions, which gives businesses a powerful way to increase average transaction value and upsell their products.

Gamification

Merchants have the option to embed a fun pick-a-card game into the payment process and entice customers to make repeat purchases.

This approach is perfect for businesses that customers visit less frequently, such as sit-down restaurants. Merchants can configure reward conditions, including minimum spend and day or day-part offers, such as half off lunch on a Tuesday, to drive activity during slower periods.

Dynamic Coupons

Dynamic coupons allow merchants to deliver targeted offers designed to encourage specific consumer behavior, such as larger basket sizes or more frequent visits from lapsed customers.

Merchants can configure these offers based on spend, location, and time of day. Customers then can choose to print these offers or simply scan a QR code to add them to their mobile wallet, giving merchants a seamless way to encourage behavioral change that potentially increases their revenue.

With these advanced capabilities, the Payment Loyalty app drives measurable results for retail businesses. Carter says customer adoption rates with Payment Loyalty are four to five times higher than traditional loyalty programs. Plus, merchants using minimum spend strategies with the platform have seen average transaction values increase by 12-18%.

Additionally, merchants get access to insights that physical or fragmented loyalty tools can't provide. Payment Loyalty gives them real-time campaign performance analytics and in-depth customer behavioral data when customers earn or redeem rewards. Merchants can use these insights to optimize their campaigns, tailor their offers, and dynamically respond to market shifts. 

“You can actually understand the profitability and incremental benefits that loyalty delivers you,” Carter says.

The Future of Customer Loyalty

With one-click simplicity, Payment Loyalty and Verifone transform the loyalty experience for consumers and merchants.

The integration embeds loyalty into the Verifone smart terminal, rewarding customers for their allegiance without the usual friction. Merchants can boost engagement for their loyalty programs, eliminate additional work for staff, and avoid the added costs and burden of managing standalone loyalty applications. They also can capture richer insights that drive profitability.

Payment Loyalty's and Verifone’s partnership is changing how merchants think about growing their business through incentives, rewards, and loyalty.

"Today, the point of sale isn’t the end of the customer journey—it’s the beginning of a deeper connection,” says Rajeev Yerukalapudi, EVP Global Head of Strategy & Partnerships at Verifone “Our terminals have evolved far beyond payment to become engagement hubs and business tools that empower merchants in every transaction."

Are you ready to transform your checkout experience? Let's talk about how Verifone can help you deliver seamless, secure payments that move your business forward.