New loyalty scheme ‘to pay banks’

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Selektpoints: The scheme will reside on banks’ electronic card payment chips.

The International Investor (TII) has announced the global launch of an innovative payment card loyalty scheme that will be self-financed.

Selektpoints can be earned and redeemed at retailers displaying the scheme's logo. Unlike other loyalty schemes, it does not require the customer to carry an additional card because all selektpoints data is stored on the chip of their payment card. With a single insertion into a point of sale terminal, both the financial and loyalty transactions are completed.

In effect, selektpoints pays participating banks, or Landlord Banks, to be carried on their cards. The business model is currently patent pending worldwide.

Adnan Al Bahar, chairman of TII, said: "We have already secured the partnership of several Landlord Banks worldwide in what is the beginning of a joint global drive to establish selektpoints as the leading EMV loyalty programme.

"Selektpoints will help merchants sell more, ensure value to its participants and most importantly focus on premium customer satisfaction."

The scheme will launch in mid 2007 and is expected to be active in at least 15 countries by the end of the year.

Robert Buchan, CEO of selektpoints, said: "We are very proud that we've given birth to a programme that has massive global appeal and will be headquartered in Dubai. It is the world's first global interoperable loyalty programme.

"We pay the banks to operate this loyalty programme. That's something that has never been done before."

Customer data captured by a Microsoft CRM (customer relationship management) programme running on the chip can be used by banks and merchants to segment their customer base and better target their promotions.

However, selektpoints is operating to the highest data protection laws to ensure that customer information is not misused, and the loyalty programme runs separately alongside the account information on a payment card.

In addition, customers have to opt in to the scheme before their information can be shared.

"We never have the card number," said Buchan. "The data is protected both from a technical point of view and a legal point of view."

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