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Locke!
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he mobile apps from stealthy loyalty startup Punchcard have only been on the market since February, but the company is now reporting it’s close to being cash-flow positive. Like a digital version of paper punchcards which reward repeat customers for their business, Punchcard’s app lets customers snap photos of their receipts in exchange for cash payouts or other rewards directly from the merchant. While not a new concept in and of itself, what’s interesting about Punchcard is how it’s been acquiring its business: it just switched on loyalty programs for millions of locations across the U.S., even if they didn’t ask for it.
“We’re looking at this as seeding the market, essentially,” explains Punchcard CEO and serial entrepreneur Andy Steuer of why the company has seemingly put the cart before the horse. In other words, usage and rewards first, paying customers (i.e., businesses signing up) second. “If you look at other location-based apps, they’ve turned on the ability to check in anywhere,” says Steuer, “and we’ve turned on the ability to check-out anywhere.” Consumers use the app, which now works at 15 million (!) locations in the U.S., to verify their purchases by snapping a photo of their receipt. As they collect punches on their virtual cards, they can earn their way to cash, freebies and other rewards. Generally (unless a merchant has specified otherwise), the rewards arrive after the 10th purchase, and, if cash-based, are the equivalent of the average order value up to $30.
