MasterCard have announced a new partnership with Chicago based firm Local Offer Network who collect and distribute data regarding daily deals offers in a bid to join the new wave of deals and discounts relating to social media and mobility.
MasterCard and Local Offer Network intend to launch a brand new program called MasterCard Offers Services before the end of the current quarter. The new program will allow MasterCard the opportunity to provide account holders various discounts and special offers via social media networks including Twitter, Facebook and Foursquare as well as giving the opportunity to offer daily deals similar to those currently offered by providers such as Groupon and Living Social.
Rival credit card issuer American Express have already established strong partnership with Twitter, Facebook and Foursquare and the deals they have been offering have proven to be highly popular. American Express went national with their program following a short term trial at the SXSW Festival in Texas last year.
The trial had such a positive response that American Express pushed forward the full scale launch. American Express cardholders who took part in the initial trial spent 20 percent more than other account holders so it is no surprise that MasterCard are eager to cash in on this potential money spinner.
Local Offer Network is able to provide clients with a daily deal alert that can be used to offer special discounts to their customers. They are also the driving force behind the website Dealradar.com which feeds daily deals directly to consumers.
The company is set to connect MasterCard issuing banks to merchants and consumers alike, thus allowing MasterCard customers to take advantage of the very best deals being offered every single day. The operation is funded by investors Matthew Pritzker and Illinois Ventures and collects deal information from more than 130 different industries and markets on a daily basis. Pritzker is one of the Hyatt Hotels heirs, one of the largest fortunes in the world.
It was the focus of a massive family feud when Jay Pritzker passed away, but in 2005 Matthew and his sister were each given a $500 million settlement from the estate. Pritzker is now a real-estate entrepreneur and investor.
Local Offer Network is headed up by CEO Dan Hess who is a former vice president of marketing and strategy for the Chicago Tribune. He has recently released a statement regarding the new partnership with MasterCard.
Our partnership with MasterCard reinforces the continued value of the deals segment,
said Hess. In this instance, ‘the deals segment’ covers Groupon, Living Social, Amazon, Google and anyone else who is competing in the daily deals market. The main contenders in this market are of course Groupon, Living Social and Foursquare.
Groupon was launched in November 2008 in Chicago and is now operating in 150 markets worldwide. Group discounts are offered based on mass merchant loyalty and the company is estimated to be worth around $1.35 billion. Living Social is based on the premise that members subscribe to a daily email list of deals.
Once the consumer purchases a deal they are emailed a voucher and if three friends also purchase the offer, then the original consumer gets the offer free of charge. Living Social is currently available on Android, iPhone and iPad. Foursquare was founded in 2009 and as of this year has approximately 20 million users. It is a location based service where users check in to places and if they have synced a credit card can be offered location specific discounts.
MasterCard cardholders should take a look at all three of these websites now in order to be in the perfect position to take advantage of MasterCard Offers Services when it launches later this year.