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24 OCTOBER 2017
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Wednesday, 27 September 2017 10:50
Tesco revamps payments and loyalty app
Relaunched system offers extra Clubcard points

Tesco has rebranded its PayQwiq mobile payments and loyalty app as Tesco Pay+.

Tesco launched the IoS and Android digital wallet app as PayQwiq in 2015. It has been progressively rolled out across UK stores and now has around 250,000 regular users.

The revamp is intended to increase the strength of the Tesco branding, and the app offering remains basically the same. Users automatically collect Clubcard points with a single swipe, multiple payment cards can be linked on the app, and single purchases can be made up to a limit of £250.

The relaunch features an offer until January 14 next year of one extra Clubcard point for every £4 spent in Tesco stores.

Tesco's supermarket rival Sainsbury's has been trialling technology at lets shoppers avoid POS queues by paying for goods on their smartphone. Still in development mode, the app is being tested with customers at the London Euston station branch who are purchasing the supermarket’s £3 ‘On the Go’ meal deal, which consists of a sandwich or salad, side and a drink. Customers involved in the experiment are asked to download the app to their mobile phone and scan their three items, before paying within the app itself. Once they have made the payment, they can leave the store without queueing at the POS.

The trial started earlier this month and the retailer plans to extend the system to 50 stores by the end of the year.


Retail rollouts

Other large retailers in Europe have been attempting to combine loyalty with payments. In May French supermarket giant Carrefour partnered with bank BNP Paribas to launch the LyfPay QR code-based mobile platform that enables users to make in-store, online and peer-to-peer (P2P) m-payments as well as store loyalty cards, coupons and special offers. In the US, Starbucks, CVS and Walmart have launched their own loyalty and payments apps.

The retail apps have mostly struggled to gain traction as, while consumers will often use their mobile device to research purchases, they generally still revert to cards or cash when making purchases. Starbucks has achieved most success, with one million people a month ordering via its mobile app, which integrates the My Starbucks rewards scheme.

Tesco says that a Tesco Pay+ digital wallet transaction takes place every three seconds at one of its stores.

It adds that the app is driving greater customer loyalty through combing a higher transaction amount than the £30 UK contactless limit and auto collection of Clubcard points in a single scan at checkout.

Tesco has been making major changes to its Clubcard offering this year, issuing a new contactless card to its 17 million members and enabling them to triple the value of Clubcard vouchers by using them with new partners Uber and Hotels.com.

“Clubcard customers using the app are now visiting Tesco more often, with their frequency of visit increasing by 20%.”

Mark Loch, Tesco digital wallet and group payments director, added: “The world is changing rapidly around us. How customers interact with their shopping experience, how they manage their money, and how they determine value, are developing all of the time. We are proud that we constantly invest in enhancing the shopping experience so that our customers receive a unique and exceptional service. Our digital wallet has proved to be hugely popular with our customers and we are confident that Tesco Pay+, with its fantastic capability, will continue to transform the shopping journey offering little helps to customers every time they shop in Tesco.”
 
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