Total System Services is implementing software at Walmart and Sam's Club locations nationwide to link loyalty rewards to health care payments, while also recognizing qualified purchases from a consumer's health plan.

TSYS will combine its Advanced AuthControl solution with Walmart's "Directed Spend," a point-of-sale decisioning program, to allow TSYS health care clients to provide incentive dollars to members through a health plan wellness incentive program.

Bloomberg News

“The addition of Walmart and Sam's Club to our growing network of retail providers is a huge testament to the capabilities and benefits of Advanced AuthControl,” Trey Jinks, group executive for loyalty, health care and emerging markets at TSYS, said in a Wednesday press release.

“The geographic coverage and breadth of merchandise these retailers offer, combined with TSYS’ innovative payment solution, creates tremendous opportunities to be healthy and reduce the growth in health care expenses by incenting healthy and preventative behaviors versus expensive treatments,” Jinks added.

TSYS says a major benefit of the Advanced AuthControl is program customization, linking customizable rewards to healthy behaviors. Through the features of the new payment solution, TSYS provides a wide range of options for where the rewards card can be accepted, which is determined by merchant category and product level.

The agreement was fueled by what TSYS cited as the need for health care payment incentives based on Medicare and Medicaid data, noting total healthcare spending in the U.S. climbed to $3.4 trillion in 2016 and is expected to reach $5.5 trillion by 2020.

As part of the agreement, TSYS will promote Walmart and Sam’s Club locations to its existing health care provider customer base.

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