Loylogic

Loylogic Takes Global Approach With Loyalty Innovation

At a time when countless rewards programs offer consumers with a seemingly endless choice, how do you make your loyalty program stick?

According to Dominic Hofer, CEO and founder at Loylogic, the key is letting those consumers use their loyalty points wherever they please. PYMNTS.com spoke with Hofer about Loylogic’s Pointspay system, his company’s approach to loyalty and why having a "liquid" virtual currency is the key to creating loyalty success.

To hear more Hofer on Loylogic’s approach to loyalty, listen to the full podcast below.

 

 

“We like to look at ourselves as sort of a virtual currency clearinghouse,” Hofer said. “What we really do is integrate with loyalty programs around the world, and then we provide them with eCommerce, or for months now also with an ePayments solutions called Pointspay, for their loyalty program members.”

According to Hofer, Pointspay is unique because it’s the first platform that makes virtual currency “truly liquid,” meaning it can be used in a wide variety of ways and accepted by many merchants. Pointspay can convert loyalty points into 160 different global currencies, and works at 30 million POS sites around the world.

Some of the companies Loylogic works with include United, Delta, Hilton, IHG, American Express and others, meaning the company works with many verticals and a wide base of partners as well. This lets consumers transform their loyalty points into everyday spending money, creating some unique opportunities for brands to make connections with their customers.

“The main concern of a loyalty program is, of course, to have an engaged, active community and a very attractive loyalty currency. And by adding Pointspay as a redemption solution the process, they make the currency super attractive because it becomes completely liquid,” Hofer said. “Members can go and shop online, and either earn points, or of course can burn loyalty currency.”

What does “burning” loyalty currency entail?

“They can basically convert to points and miles into a prepaid credit card, and use it at over 30 million point-of-sale [sites] or merchants worldwide. Basically, the entire Visa and MasterCard networks,” Hofer said.

“We see that, you know, users use it for paying energy bills, buying and bags … anything you could imagine actually is being bought, and that makes, of course, a currency very effective.”