Mobile apps have become an important part of loyalty programmes. Nowadays, they are used not only to identify participants but also to facilitate payments. This solution has been introduced by the largest organisers and is setting a new trend in loyalty programmes. What methods can we use to pay via a mobile app?
Payment methods via the loyalty programme app. Topics covered
Payments via mobile apps for loyalty schemes are becoming increasingly common. This article outlines various aspects of the Pay module’s functionality in schemes such as Żappka Pay, Lidl Pay, Orlen Pay, Starbucks Rewards and Green Caffe Nero (by YOYO).
The article discusses issues such as:
– loyalty schemes with a mobile app featuring a payment module
– various in-app payment methods within loyalty schemes
– an overview of the Starbucks, Orlen Pay and Green Cafe Nero apps
– the benefits of mobile payments for loyalty scheme members
Four methods of in-app payment in loyalty schemes
The main aim of ‘Pay’ solutions is to link the identification of a loyalty scheme member to the payment process. In this way, customers can make payments exclusively via a mobile app. However, the payment method varies depending on the programme. The difference is evident not only in the authorisation process, but also in whether a cashier is required. Payment via a mobile app can be divided into four basic methods, which are used in Polish loyalty programmes.
1. The prepaid method
The Starbucks Rewards app uses the prepaid method, which involves using part or all of the top-up amount to credit a virtual account. Before payment, a virtual card appears on the smartphone screen as a QR code. This is then scanned by the reader at the till, allowing you to make the payment. No further authorisation is required. However, it is important to remember that the app is not permanently linked to your payment card and requires regular top-ups in order to make purchases.
2. Authorisation of access to the card
In the case of apps such as Lidl Pay and Green Caffe Nero, the loyalty card is only displayed once access has been authorised. This is done using a PIN or biometric authentication. However, the transaction itself is not subject to any additional security measures. As with Starbucks Rewards, the code from the app is scanned by the reader at the till. Furthermore, Green Caffe Nero allows you to choose between earning points and making a payment. In the app, you select Collect Stamps Online or a linked payment card.
3. Transaction authorisation
Another method of making payments via a loyalty scheme is to authorise each individual transaction within the mobile app. This is the case with Żappka Pay, where payment is preceded by biometric authentication or a PIN. The virtual card is scanned by the shop assistant beforehand.
4. Authorisation using geolocation
Orlen Pay is another mobile app that allows you to pay for your purchases. To do this, the user scans the QR code on the petrol pump and authorises the transaction on their phone. No cashier is required for this process.
As we can see, in the vast majority of cases, payments are made using a card linked to the app. The exception is Starbucks, which operates on a prepaid basis. A Starbucks card is, however, required if you wish to earn additional points in the loyalty scheme.
Another common feature is the presence of a cashier – in addition to Orlen Pay – who uses a card reader to scan our virtual card from the app. However, this requirement can lead to complications. One example of this is Żappka Pay, where cashiers confuse the programme with the accumulation of points (Żapps) and the use of these points to pay for purchased products. This is due to the low uptake of Żappka Pay by customers. Orlen Pay, however, has found a way round this and introduced an innovative solution that is worth examining in its own right.
Orlen Pay – standalone payment
The Orlen Pay mobile app is the only one that allows you to pay without the need for a cashier. The whole process is quick and takes place entirely at the petrol pump. All you need to do is confirm basic details such as the number of litres, the amount due and the petrol station’s address. It is worth noting that Orlen Pay is the only app of its kind in Poland to use geolocation. If you do not give your consent to this, you will not be able to use the service.
The Orlen Pay app is compatible with Orlen Vitay. Admittedly, the latter app does have a feature Pay with Orlen Pay, but when you tap it, you are redirected to the Orlen Pay app. This information is then authorised using a code sent via text message.
With Orlen Pay, there are several ways to pay. This is undoubtedly what sets it apart from other Polish apps in this respect. The basic method is, of course, linking a payment card. In addition, you can also add Apple Pay and Blik. Furthermore, it is possible to add the Large Family Card and other loyalty and discount cards, such as Biznes Tank or Orlen Vitay. In the case of the Orlen Vitay card, you need to enter its number or take a photo of it. This is because the app does not automatically retrieve such information – nor does it automatically retrieve your personal details – which is a slight inconvenience.
The payment process is very straightforward and intuitive. Once you have filled up, simply scan the QR code on the petrol pump using the Orlen Pay app and confirm the payment on your phone. There is no longer any need to go to the pay-off point. Once the transaction has been completed in the app, you can simply drive off.
Paying via an app in a chain of cafés
Petrol stations aren’t the only places where you can pay using an app. The coffee shop chains mentioned earlier in the article also deserve a separate discussion. The Starbucks Rewards programme is, in fact, an electronic wallet. To use this feature, you need to top up your account using your payment card. It is not possible to link a card permanently, as is the case with other programmes.
The terms and conditions state that the Starbucks Card is an electronic form of a bearer gift voucher. It is neither electronic money nor a payment card. You can top up the app with a maximum of 1,000 zlotys. The funds remain valid for 12 months from the date of the last transaction.
The solution proposed by Green Cafe Nero is somewhat different. The mobile payment module may remind us of the method used by Lidl Pay. However, the app’s functionality itself leaves a lot to be desired. First and foremost, what immediately catches the eye is the bilingual interface, displaying text in both Polish and English simultaneously. Furthermore, the app displays developer text, which can give the impression that it is not yet complete. Despite this, the payment module works smoothly and allows you to pay for your purchase in the café with a single card authorisation.
Which loyalty programme app is the best?
Despite the many differences between the programmes, we believe that the most convenient apps are those that require only a single authorisation and are easy to use. These include: Lidl Pay and Green Caffe Nero. Biometric or PIN authentication is only required when authorising a payment card and does not require any further steps.
Another aspect worth considering is security. The Starbucks app performs worst in this respect. It does not require any authorisation from the user. The prepaid solution itself is also not among the most secure or functional. The Orlen Pay and Żappka Pay apps offer the highest level of security. Each individual transaction requires authorisation. Furthermore, the petrol station chain’s app uses geolocation to identify the user.
The benefits of mobile payments
There is no doubt that paying via a mobile app offers benefits to the customer. When shopping, we don’t need our wallet or payment card. All we need is a phone with the app installed, linked to our card, which allows us to authorise the transaction.
The greatest advantage of paying via mobile apps is that it simplifies the shopping process and saves time. This kind of integration of online transactions and identification within loyalty schemes has been anticipated for many years, including by i360. Current solutions merely confirm this new trend, which is growing stronger with each passing year. It is likely that other loyalty programme operators will soon follow suit, and further mobile apps will emerge that are worth keeping an eye on.
