By Angela Altass
Published January/February 2016
Read full story on page 16-19 on Convenience & Carwash

An increasing number of consumers are expecting a reward for making a purchase and SmoothPay offers residents of downtown Toronto and surrounding area a way to combine mobile payments with loyalty programs.

“When customers pay with SmoothPay, they get discounts and loyalty rewards automatically deducted from the transaction price,” says Brian Deck, co-founder, SmoothPay. “These are real incentives for the customers to use SmoothPay, and it is helping to grow the business of some of the retailers who are using it.”

“The popularity of loyalty programs is increasing in Canada,” says Deck. “If you dive that by every living Canadian, that’s 3.68 memberships per person. Loyalty programs are popular with all ages.”

SmoothPay transactions are made through smartphones using the tokenization method. Consumers can use the SmoothPay app, which features all locations in one spot, or download the merchant’s individual app, powered by SmoothPay.

“When someone is making a purchase at point of sale non of their financial information is transmitted so that information is not at risk,” says Deck. “A token is used, which is a unique number that cannot be used for anything else. It identifies the user at that specific moment in time. It cannot be used for anything to transact with other than at that moment in time at that location for that user. We have expiry of tokens involved in our solution so even if a token is captured it cannot be used for another transaction later on.”

SmoothPay is currently working on solutions for the convenience store industry under the direction of its VP of National Accounts Scott Reed who is a former of director of operations, merchandising and marketing for Mac’s Couche-Tard.”There will be some exciting announcements in regard to this in 2016,” says Deck.

Services such as SmoothPay offer retailers a way to connect with their customers, says Deck.

“Merchants can really leverage this strategy,” says Deck. “It enables marketers and management at the chains to do a better job engaging with customers and know who their customers are and how often they come to the store. What locations are they visiting and what products are they busing.” When you have that type of data you can target promotions on a one-to-one or one-to-many basis and really drive sales.”