Wednesday, February 27, 2013

Foursquare to Partner with MasterCard and Visa

I wrote about MasterPass earlier this week (http://mobilemizzou.blogspot.com/2013/02/everyone-in-mobile-commerce-industry.html) but today, the news was about Foursquare. When you see someone "check in" at a location, odds are he's using Foursquare. It was only a matter of time before the credit card companies got involved. Foursquare has announced new partnerships with Visa and MasterCard, which will give users discounts when they use their credit cards at certain locations. It's a clever marketing venture by all parties involved. It's a very low cost maneuver that will encourage customers to use both Foursquare and their credit cards.

"The first deal debuting today for all three credit cards is being offered at 8,000 U.S. Burger King locations: a $1 discount to those who check in and spend at least $10."


Other retailers such as Nike and Dunkin Donuts are expected to follow suit.


(http://adage.com/article/digital/foursquare-partners-visa-mastercard-discounts/240020/)


Here's the question, though: Foursquare users invariably use credit cards. But will Foursquare be able to infiltrate fully the much broader category of credit card users? I could see this relationship turning into a one-sided affair in which the credit card companies benefit at a higher rate than Foursquare does.


Another source: http://www.pymnts.com/briefing-room/commerce-3-0/Mobile-World-Congress-2013/mwc-day-two-foursquare-makes-biggest-payments-splash/


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