MasterCard has launched Pay with Rewards, a mobile app that allows MasterCard credit card holders to use their reward points for purchases by swiping their card at the point of sale.
The mobile app allows consumers to turn on the Pay with Rewards feature. This pre-purchase decision is what allows consumers to purchase with rewards at any point of sale terminal that currently accepts MasterCard, without the merchant having to upgrade terminal hardware or software.
"That's the problem in loyalty and rewards programs today, there's not enough flexibility," said Chris Guiney, vice president of product development at MasterCard, during the Finovate Fall conference in New York Sept. 23. "Let's take the power of rewards and bring it to anywhere you can use your MasterCard."
Consumers are able to pay with whatever method the merchant accepts, including EMV and Near Field Communication, said Kyle Clark, vice president of product development at MasterCard.
The mobile also shows consumers their rewards balance and the equivalent value in U.S. dollars. After consumers purchase an item, they receive a mobile notification and an emailed receipt.
The program also provides flexibility to issuers and merchants, who can differentiate their rewards program by inserting their 1%, 2% and 3% rewards-redemption model into the spending model as well as promote their program by offering consumers double rewards for a certain amount of time.