Providence-based Swipely is Simplifying Loyalty Programs

Swipely, a nascent company based in Rhode Island, aims to be one part Foursquare, one part Groupon, and one part rewards card, with an added dash of convenience. Users can link their existing debit or credit card to a Swipely account, and instantly start earning and easily redeeming rewards from businesses.

A complaint commonly leveled against Groupon is that businesses generally take a loss on those customers who use Groupons, only to find that the customers never come back. So they can only hope to benefit from the increased exposure and social media buzz that the discount generates.

Conversely, loyalty programs keep customers coming back time after time, but may fail to attract any new customers. They also suffer from the inconvenience of having to carry (and remember) a Starbucks card, a Peet's card, and a buy-nine-get-one-free bagel card. These traditional methods just swell our wallets, and are practically begging to be buried in a purse or jacket pocket and forgotten. Hence, Swipely

Swipely is a web app that borrows some of the functionality of Groupon and of loyalty rewards cards, but without the hassle. It links up to one of your existing debit or credit cards, and rewards you for purchases with local merchants. By doing so, it can support long-term loyalty programs as well as one-time deals like those offered by Groupon and LivingSocial. Businesses can set up simple dollar-for-point rewards programs, and are encouraged to give bonuses when customers share their experiences on Facebook or Twitter.

According to CEO Angus Davis, "We're not trying to create a one-night stand between merchant and customer, we're trying to create a lasting marriage."

The simple, hands-off approach is likely to be their biggest selling point. Unlike gas credit cards that pay rewards on gas purchases, for example, there's no application process: the rewards just rack up automatically. And reward dollars earned at Swipely-enabled businesses are simply credited as discounts, or deposited as cash back in the user's "Swipely Bank." This money can then be withdrawn, through direct deposit or by sending the user a check in the mail.

According to Stuart Kiely, marketing director at Swipely, "From a user perspective...it's totally seamless. But, perhaps equally as important from the merchant perspective, [they can] build a loyalty program without any point of sale integration or staff training."

For the moment, Swipely is only used by Rhode Island merchants, primarily in Providence. But they've gotten substantial financial backing, so I can only assume they plan to hire sales teams for other major cities and expand nationwide. I'll definitely be keeping my eyes open for their push westward, so I can start saving money on all this coffee without having to lug around a pile of loyalty cards.

This post comes from the rewards nerds at NerdWallet, a site dedicated to helping users find the best money-saving credit card deals.