MasterCard has dived feet first into the card linked loyalty battles with the acquisition of Truaxis. The company should prove to be an anchor for MasterCard Offers Services, where it has partnered with Local Offer Network and others.
Formerly known as BillShrink, a lowest rate guide which developed a customer base of 1.6 million, Truaxis has most recently been competing with other card-linked loyalty players for bank affilations. The company has raised $9 Million since its founding. BIA/Kelsey estimates that more than $170 million has been specifically invested in the bank-dependent, card-linked loyalty space.
Banks enjoy the affiliations because a loyalty card enhanced their chance to win “top of wallet” share. It also allows them to shift the costs to supporting the rewards of their credit/debit cards to merchants; while also getting a commission for the sale of products.
Key players in the space include Cardlytics, Cartera Commerce, Edo Interactive and FreeMonee Network. Other key players are also developing loyalty products — more than 20 — but are not dependent on bank relationships. These include such diverse players as Square, LevelUp and Groupon.
While Truaxis hasn’t landed any major banks, it works with 2,500 independent banks via a marketing relationships with Jack Henry & Associates, a bank platform provider.
Clearly, the affiliation with MasterCard could provide a major jumpstart for the company.
We’ll be taking an intensive dive into the loyalty space at SMB Digital Marketing in Chicago Sept. 17-19, as we feature top execs from Cartera, Edo, Belly, Groupon and Local Offer Network, among others. Register here.