Mobile loyalty firm Tetherball and "contactless" payment services provider ViVOtech have joined forces to promote NFC/RFID-based mobile loyalty marketing programs. Tetherball is currently running one such program with QSR chain Dairy Queen. It works as follows: the Dairy Queen customer, who has previously opted-in to receive communication or offers via SMS (and has placed an RFID tag/sticker on her phone), takes that phone to a small in-store kiosk and swipes it to receive a paper version of the offer (coupon) and redeem it. The kiosk prints out the right coupon for the customer, controlling for fraud and making redemption easier at the register. 

The new partnership combines this RFID based mobile loyalty program approach with ViVOtech’s installed base of contactless readers (and their customers). Here's how the press release explains it: 

Integrating traditional marketing methods such as in-store advertising, customers are engaged to sign up for mobile loyalty rewards programs offering promotional discounts and rewards points for purchases or visits. Upon joining, customers are given a Tetherball Tag™ powered by ViVOtech technology, a tiny RFID chip that is easily affixed to their current mobile phones, which uniquely identifies them through Tetherball’s sophisticated technology platform. Tetherball clients are then able to send offers to their customers via standard text messaging. Offers are redeemed electronically using existing in-store Contactless point-of-sale terminals or stand-alone Contactless kiosks provided by Tetherball. 

One of the challenges of the old system that Tetherball was using was the need to install the kiosk/readers at the POS. Now through this partnership they've got access to an existing infrastructure. 

You can listen to a webinar featuring Tetherball President Jay Highley discuss mobile loyalty with SmartReply's Mike Roman from our recent Mobile Marketing Summit.