Transaction Connect Converts Payment Cards into Loyalty Cards

Transaction Connect intends to convert payment cards into loyalty cards and managed to raise €1.5 million.

This funding series as led by Elaia and comes in addition to €700,000 in non-dilutive investment.
Goal: boost their omni-channel CRM solution and remove the need for separate loyalty cards.
This start-up was founded in September 2016, and features a platform for optimising CRM through highly customised offers, based on transactional data analytics and consumers’ behaviour.
Targets: multi-brand commercial areas, including shopping malls, airports and train stations, and shopping centres featuring a large number of points of sale.
How it works?
- Transaction Connect lets consumers (after consent has been obtained) pair their means of payment with their loyalty programme.
- When paying by card at checkout, customers are automatically identified. They don’t need to show their phone or loyalty card.
- This start-up’s technology identified each online and offline transaction, whichever the brand.
- Consumers may then collect points for each purchase, enjoy cash-back and other promotional offers.
This financial round should help them boost their operational and technical teams. They would also plan to achieve European and international reach.

Security requirements. In order to gather consumers’ payment data and meet bank-grade requirements, this start-up has been granted approval by the ACPR. The data they collect is encrypted and stored to EU-based secure servers.
Securing customer loyalty. Transaction Connect says they want to enable brick-and-mortar retail outlets to expand their business through engaging their customers and securing their loyalty in a different way. They rely on AI-based recommendation algorithms to help online and brick-and-mortar marketplaces retain end customers.

Their solution was tested in 4 shopping centres from the Unibail Rodamco group, or 520 brands and 800 shops. After 15 months, customers seem to have adopted the service and 87% are active users.
In the weeks to come, 9 additional commercial centres will be equipped, i.e.: 880 brands and 1,700 shops in France, in Spain and in Sweden.
Multi-brand loyalty programmes are becoming increasingly popular. A few days ago, Wirecard unveiled a multi-merchant solution combining payment and paperless loyalty cards.
Another French Card-Linked Offers specialist, Paylead, also announced they have been selected to run a cashback programme for Max, Arkéa’s aggregation service.

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