25 March, 2012 - 22:09. Asked by a Finextra member
how payment switches in the uk
if we are wanting to launch a loyalty programme in the UK, what switch do we need to pass through and how many are there?'
Posted: 16 Nov, 2012 - 07:38
Posted: 20 Nov, 2012 - 15:49
Interesting that this question has been on site since March, and that no one has been able to answer!
Posted: 22 Nov, 2012 - 09:12
@DavidG: Anonymous comments are okay, at least they're bringing something to the table. But, even if I earlier knew about the existence of this question (I didn't) or the answer to it (I do), I don't feel like responding when help-seekers refuse to identify themselves. Maybe it's only me, but, as you've rightly pointed out, there are no answers since March.
Posted: 22 Nov, 2012 - 13:55
I'm not sure how you'd answer the "how many are there" part of the question........
Posted: 25 Nov, 2012 - 12:03
Well aside from LINK (ATM scheme) there aren't really any centralised "switches" in the UK, but there are lots of "processors" but not all of them will provide loyalty programme services. It also depends on what type of loyalty programme; card issuing "Clubcard" style programmes, or an airline loyalty programme for example? There are also plenty of specialist loyalty companies out there too. There's not enough information to answer this question properly
Posted: 26 Nov, 2012 - 08:59
Perhaps a little more context to the question would be helpful. What sort of loyalty system was one thinking of? What's the definition of switch? - is it like Jonathon asked with the card issuer or the retailer/loyalty acquirer?
Good to see any responses as long as helpful :)
Posted: 08 Dec, 2012 - 12:10
Why should one expect "helpful" answers to anonymous, ambiguous questions?
Unless, of course, you are going to give me money!
There are many options you can take, however you need to clearly define what your objectives and ultimately your business goals are. Many payment processors in the UK support connections into existing loyalty coalition program's, such as nectar. However if you are looking to set up your own loyalty program i.e. Merchant specific, then more often than not this is achieved using a managed loyalty provider, rather than a PSP. This is because it allows the merchant to capture richer data from each transaction (i.e basket level data) as compared to a simple points per pound spent. Having said that, it is possible to build loyalty program's using payment data if your business is happy to make the assumption that a customers payment card is unique. I'm not certain on the number of providers out there which can do both, but you may want to check out The Logic Group. They provide managed solitions for combined payment and loyalty accessible through a single API. The key benefit of taking a combined approach to payment processing and a customer loyalty program is that you can do direct comparisons between loyalty members and non-members and get much more valuable MI.