Square is not only trying to get rid of the need for a credit card, now it’s also eliminating the need for physical loyalty cards.
The latest version of Pay With Square now includes virtual loyalty cards for users who frequent certain shops. The loyalty cards work just like the physical punch or stamp cards from other retailers, but without the hassle of trying to dig them out of a wallet. The virtual card is marked every time the user buys something in a store where they have a loyalty card.
Retailers can choose what the buyers get when users fill up the card, and can use the Square Register app for iPad to check stats on loyal customers. For businesses it’s an easy way to track which users come in the most often, it’s much easier than trying to keep track of anonymous customers with cheap punch cards.
The new app also gives businesses new ways to draw in new users. Businesses can now offer deals or discounts for first-time customers using Square. The offers will appear below the business’ name in the list of nearby locations that accept Square as payment. The hope is that users will become loyal customers after getting a discount on their first visit.
The new features of the app sound like a great addition to Square’s already great service. The only problem is the selection of stores that use Square for payments is small, and finding them is difficult in many areas. People who live in cities like New York and San Francisco have an easier time finding those businesses, while people outside those cities might only find a few of them.
Square will soon have some competition in this space, as Apple’s Passbook in iOS 6 will also hold loyalty and reward cards for users. Apple hasn’t announced a full mobile payment option for the app yet, but it seems like the natural evolution of the new app.
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