Mobile Rewards Currency Redemption at Point of Sale
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Solution Overview
Problem
Existing systems for using rewards currency at point of sale devices do not effectively enable consumers to redeem rewards points, leading to unused rewards and missed customer loyalty opportunities for financial institutions.
Innovation Solution
A computer-implemented system and method that allows account holders to use rewards currency on their mobile devices at merchant POS devices, involving location acquisition, authentication, rewards currency availability notification, and seamless integration with payment processes, enabling easy redemption of rewards points without additional charges.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If a rewards program is implemented, then customer loyalty should increase, but account holders do not perceive the program as useful or valuable because they do not know how to redeem the points
Solution Approach 1:
The system performs preliminary actions by automatically notifying users of nearby merchants where rewards can be redeemed, calculating available rewards balances in advance, and preparing redemption options before the user reaches the merchant. This eliminates the need for users to manually search for redemption opportunities or understand complex redemption rules.
Solution Approach 2:
The system enables self-service by automatically presenting redemption options to users based on their location and rewards balance, allowing them to select and redeem rewards with minimal effort. The system handles the complexity of reward calculation, merchant verification, and transaction processing automatically.
2Device complexity
If manual redemption process is required, then system complexity is reduced, but users will not make the effort to redeem rewards points
Solution Approach 1:
The system merges multiple functions into a single integrated solution: location tracking, rewards balance calculation, merchant verification, and transaction processing are all combined in one automated system. This consolidation manages complexity internally while presenting a simple interface to users.
Solution Approach 2:
The system changes parameters dynamically based on user location, rewards balance, and merchant participation status. It automatically adjusts redemption options and notifications based on these parameters, making the system adaptable without requiring complex user input or manual configuration.
3Ease of operation
If users must find and learn the process for redeeming rewards, then system simplicity is maintained, but users will not actually use their rewards points
Solution Approach 1:
The system provides continuous feedback to users about their rewards balance, nearby redemption opportunities, and transaction status. Users receive notifications when they are near participating merchants and are informed of their available rewards, eliminating the need to manually check or search for redemption information.
Solution Approach 2:
The system acts as an intermediary between users, merchants, and rewards programs. It automatically communicates redemption opportunities to users and verifies merchant participation, shielding users from the complexity of understanding redemption rules and processes while ensuring accurate rewards delivery.
Data Source
AI summary
The invention relates to a computer-implemented system and method for enabling the use of rewards cash or points with a mobile device at a merchant's point of sale device, according to one example. The method may comprise the steps of: acquiring information about the location of a mobile device of an account holder; sending information to the mobile device identifying one or more nearby merchants at which the account holder is able to make a payment with the mobile device using a rewards currency associated with an account of the account holder; sending to the mobile device an available rewards currency amount that can be applied to a purchase; receiving a selected rewards currency amount that the account holder elects to apply to the purchase; and initiating a generation of an electronic payment signal by the mobile device for the total purchase amount.