Square is now focusing on loyalty punch cards and rewards. More can be expected from this startup than a little card reading device plugged into a smartphone.
Mobile payments system Square is building on its card reader and point-of-sale service with features that merchants and independent retailers can use to create loyalty programs and other return visit incentives. Making use of increasingly popular smartphone-based “punch cards” and rewards, Square gives its clients more tools to engage their customers and increase marketing value. Users of the Pay with Square app collect cards within the app and use them to track rewards from purchases. Merchants can activate first visit specials and customizable punch cards to attract new customers or to incentivize regular customers to keep coming back.
Loyalty programs target current and potential customers, merchants too
While merchant-side tools can be customized to a specific shops needs, Square includes analytics to determine what those needs are. Digital loyalty programs gain their strength from their behavior data collection practices, and Pay With Square is no exception. In-app reporting “provides quick access to sales trends in real time” and Square Register has also increased its features, including easy x and z reports, simple item category creation for inventory libraries, and customizable discounts. Additionally, Pay With Square has redesigned its interface to encourage new business discovery, a trend that has also influenced Foursquare’s recent update.
Mobile payments providers now competing over diversifying features?
Square is broadening its mission considerably - loyalty programs with gaming features, a more robust Register with inventory and discount expansion, and more robust business discovery. This is a huge step for a startup that began with a little card reader dongle and a simple app to use it with. But with many mobile payment options present or launching in the future, Square is strategizing to keep ahead of the curve by capitalizing on viral usability with its new loyalty features. It is also strengthening its scalability by offering more support for larger businesses with its Register update. Square is also becoming a tool for the spontaneous user with its discovery tool.