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Coffee Republic Brews Up RFID Loyalty Cards
Coffee Republic has a policy of generating repeat customers by offering loyalty programs. For every £20 ($31) spent at one of its stores, a customer gains a free £2 purchase at one of the chain's locations. According to Withane, the company sought a way to provide that loyalty service—which is impossible with the Barclaycard—and also speed the POS transactions.
The result is the sQuid payment and loyalty card designed specifically for Coffee Republic. This card was introduced in three London-area coffee houses on Dec. 5. Similar to the Oyster card, as well as contactless MasterCard and Visa credit cards issued by Barclaycard and other banks, the sQuid card contains a contactless NFC 13.56 MHz Mifare chip that stores a unique ID number. When acquiring a sQuid card, a customer provides such personal data as his or her name, gender and age, as well as an e-mail address, which is loaded into the sQuid database and linked to the card's unique ID number. The customer can then load the card with money, either at one of Coffee Republics' participating stores (by paying with cash or drawing money off a credit card), or online (using a credit card).
Once the sQuid card is loaded, the customer can use that card's prepaid balance to make a purchase by tapping it against a sQuid terminal, which reads the card's ID number and transmits that data to the sQuid database. There, the ID number is linked to information regarding the cardholder's account, including the balance and the amount spent at Coffee Republic, in the sQuid back-end system. The system is designed to automatically alert both the customer and the vendor with a visual message on the terminal display whenever that patron has spent £20, then offer a £2 discount off the customer's next purchase.
Currently, Withane says, the company is issuing 1,500 cards to customers in three London restaurants—a large shop at Bluewater Shopping Centre, an upscale shopping mall; a medium-sized store with more seating available, often used by business people working in the vicinity of Broadgate, a business area of the city; and, at the Canary Wharf business and shopping district, a small "grab and go" restaurant with limited seating. The objective, according to Withane, is to determine how well the card is received at these different restaurant formats and sizes, and then to base expansion plans accordingly.
"There's been a huge media push for contactless payment cards in London," Withane says, adding that as a result, London consumers are generally enthusiastic about the cards. "They walk in, top up the card and get started right away." After a week of the sQuid service, he says, customer interest has been high in all three stores—though in smaller towns, he expects customers would be slower to adopt the technology. After Coffee Republic evaluates the sQuid program's success at the three current locations, the company will determine if and how the system should be deployed throughout the rest of its stores.
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The result is the sQuid payment and loyalty card designed specifically for Coffee Republic. This card was introduced in three London-area coffee houses on Dec. 5. Similar to the Oyster card, as well as contactless MasterCard and Visa credit cards issued by Barclaycard and other banks, the sQuid card contains a contactless NFC 13.56 MHz Mifare chip that stores a unique ID number. When acquiring a sQuid card, a customer provides such personal data as his or her name, gender and age, as well as an e-mail address, which is loaded into the sQuid database and linked to the card's unique ID number. The customer can then load the card with money, either at one of Coffee Republics' participating stores (by paying with cash or drawing money off a credit card), or online (using a credit card).
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| Aruna Withane |
Currently, Withane says, the company is issuing 1,500 cards to customers in three London restaurants—a large shop at Bluewater Shopping Centre, an upscale shopping mall; a medium-sized store with more seating available, often used by business people working in the vicinity of Broadgate, a business area of the city; and, at the Canary Wharf business and shopping district, a small "grab and go" restaurant with limited seating. The objective, according to Withane, is to determine how well the card is received at these different restaurant formats and sizes, and then to base expansion plans accordingly.
"There's been a huge media push for contactless payment cards in London," Withane says, adding that as a result, London consumers are generally enthusiastic about the cards. "They walk in, top up the card and get started right away." After a week of the sQuid service, he says, customer interest has been high in all three stores—though in smaller towns, he expects customers would be slower to adopt the technology. After Coffee Republic evaluates the sQuid program's success at the three current locations, the company will determine if and how the system should be deployed throughout the rest of its stores.
