US micropayments company Peppercoin has been bought out by Chockstone, a provider of stored value loyalty services to merchants. Financial terms of the deal were not disclosed.
Founded in late 2001 Massachusetts-based Peppercoin's micropayment system was developed as a spin-off from the cryptographic and information security group at MIT.
The company's PCI-compliant services are now used by restaurant brands to tie customer loyalty programs to credit and debit cards at the point of sale.
Jeffrey Lipp, CEO and president of Chockstone, says the acquisition is a strategic move: "Peppercoin's focus on delivering targeted offers to credit and debit card customers to increase frequency for restaurant companies is a perfect fit with our business.
Peppercoin provides merchants with secure access to their customers' payments data so they can increase the effectiveness of loyalty schemes. Merchants using the system are also provided with real-time reporting and customer analytics tools to develop offers based on business needs and consumer response.
Commenting on Chockstone's acquisition of the company, Mark Friedman, CEO of Peppercoin, says "Combining our portfolios of business and highly complementary technology creates an unbeatable offering for merchants seeking to improve profitability through loyalty and rewards programmes."