Total System Systems Inc., or TSYS, is reselling a new loyalty scheme that uses consumer-behavior data to shape individualized rewards.

The Columbus, Ga.-based processor has been working with the company that developed the system, Silicon-Valley-based Truaxis Inc., for about eight months, says Paul Bridgewater, TSYS group executive of global product.

In the meantime, MasterCard Inc. acquired Truaxis last month with no apparent slowdown in the TSYS introduction of the service.

Merchants work through a step-by-step process that Bridgewater calls "straightforward" and "intuitive" to choose offers they want to make to shoppers and then set the criteria for qualifying for those offers.

Based on data already compiled, the process tells merchants how many of their customers appear likely to qualify for the offer and how many of those who qualify seem ready to take advantage of it, he says.

If those numbers indicate a probable payout that seems too big, the merchant can limit the number of consumers who receive it.

Moreover, merchants pay only when consumers accept rewards, Bridgewater says.

"It's a 'pay-for-performance" model," he notes. "It doesn't cost anything until somebody starts buying."

Truaxis salespeople have been pitching the system to large national retailers but not to small merchants, leaving an opportunity for independent sales organizations and agents to offer it to their clients and potential clients, Bridgewater says.

"I don't believe Truaxis has gone down the ISO path," he notes.

ISOs can put a few pages for the service on the portals they present to merchants, Bridgewater suggests.

For their efforts, ISOs would receive a cut of the proceeds, while providing a service that makes their relationship with the merchant more "sticky."

TSYS feeds data from online and offline credit and debit card transactions into the Truaxis platform, thus showing consumers' purchasing habits. When those habits match a merchant's offer, the Truaxis platform notifies the consumer of the loyalty reward by posting a notice on electronic or paper billing statement, Bridgewater says.

In most cases, rewards appear automatically, and consumers have the chance to opt-out if they're not interested.

Consumers also have an opportunity to "like" the rewards which, along with transaction data, "teaches" the system which rewards to offer, Bridgewater says.

The offering falls in line with the TSYS "connected mobility strategy," which has already introduced Near Field Communication capabilities and should provide additional services soon, he says.

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