Chase Paymentech Solutions LLC will offer a New York startup's mobile coupon technology to its merchant customers under an agreement the companies finalized last week.
OfferIQ's platform lets retailers target customers with location-based product offers that can be redeemed by paying for a transaction with an enrolled debit or credit card. The customer receives an alert shortly after redeeming an offer, with the discount appearing as a credit on their card statement. Consumers can participate by signing up through their card issuer or through OfferIQ directly, according to Paul Harkins, the company's chairman and chief executive.
In landing Paymentech as a client, OfferIQ has greater ability to quickly expand the number of merchants using OfferIQ's Virtual Incentive Platform, he said. Because consumers redeem offers by swiping their cards, the service does not require merchants to upgrade their point of sale technology in order to scan digital barcodes like other mobile coupon programs.
"The functionality allows a retailer to be ROI positive from the first transaction," Harkins said in an interview Monday when the deal was announced.
OfferIQ, a division of Astorenearme Inc., has been working with Paymentech for several months, testing the service with some of the acquirer's clients. Harkins would not say how many merchants are using the service or whether OfferIQ has agreements with other merchant acquirers.