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Mobile Loyalty

Why Your Business Needs a Contactless Loyalty Card

Written by 
Brad Davis
August 14, 2020

When it comes to retail and hospitality, COVID-19 has drastically impacted the way businesses and consumers interact.

While contactless payment methods were already taking over a growing share of global point-of-sale transactions, there’s been an even sharper peak in demand for contactless loyalty cards and therefore contactless loyalty suppliers.

To put it simply, this unprecedented pandemic has merely accelerated the world’s gradual shift towards a contactless society. Whereas contactless payments and loyalty practices used to just be about convenience, now it’s also about safety.

The benefits of offering customers a contactless loyalty card

As consumers turn to contactless payment methods like e-wallets and instalment payment providers like Afterpay, businesses need a touch-free loyalty card.

Whether your business is creating a loyalty program from scratch or simply updating it from paper punch cards or plastic loyalty memberships, contactless loyalty solutions are the future.

This kind of digital loyalty program allows customers to accrue their loyalty points and redeem their rewards without ever opening their wallet or making physical contact. All the customer needs is their mobile device (which they're always likely to have on them).

If you also have a takeaway service or sell products online, a digital loyalty solution also allows your online/takeaway customers to enjoy the same convenient loyalty experience as your in-store customers, as your loyalty program can operate across both channels.

Stamp Me's digital stamp card

Learn More about Stamp Me

Given the current circumstances, it’s pretty clear why customer loyalty is more important in 2020 than ever; and your existing customers are the ones that will help you bounce back from this difficult period.

“We’ve seen a steep peak in businesses wanting to implement a digital loyalty program. We believe COVID-19 has highlighted just how important it is to have that digital connection to customers.” says our Head of Marketing, Michaela Ward.

There are countless reasons why a digital loyalty program is a good idea, in any economic climate. However, right now there are three key reasons why business owners should specifically opt for a contactless solution: convenience, safety and of course, that digital connection to customers.


A paperless loyalty card simplifies the process of earning points and redeeming rewards, making life easier for both the customer and the merchant.

No tedious stamping or typing as you search for the customer details while a large queue of customers wait impatiently…

convenient contactless loyalty card practices
The convenience of a digital loyalty card

We can guarantee that a customer will also have their phone on them 99% of the time - so unlike a paper punch-card that can be easily forgotten, a digital one is always in their pocket or bag.


It goes without saying that a completely touch-free transaction allows businesses to reopen without the fear of spreading the coronavirus or exposing consumers to other infections.

If customers feel confident that they can safely purchase products or services, earn loyalty points, redeem rewards and generally support local businesses, they will.

Businesses need to show their customers that their safety is the absolute number one priority in times like these. Handling paper punch cards to and fro is simply unhygienic and unsafe.

social distancing point of sale
Contactless payment

Digital Connection

Immediately, the connection between your business and your customers extends beyond whether they are physically in your shop or browsing your online store. By securing a spot among the app list on your customers’ mobile devices, you’re able to keep your brand front of mind.

Direct Communication

A digital loyalty program allows businesses to send targeted communications and tailored offers directly to their VIP customers’ mobile devices, anytime and anywhere. This is called “below the line” advertising, and it’s far cheaper and more effective than traditional advertising methods.

Increased Engagement

The Stamp Me digital loyalty app gives merchants the option to provide customers with perks like Birthday Club, Scratch & Win and other exciting functions that engage consumers in innovative ways.

For some tips on how to create some hype around your new contactless loyalty card, check out our article on 'How to Promote Your Loyalty Program Without Spending a Cent'.

How does a contactless loyalty card work?

There are numerous ways that a business can go about creating a contactless solution for its customers. Here we'll explain a couple of primary ways that our Stamp Me Loyalty App can operate to suit a range of businesses...

It’s worth mentioning that none of the below validation methods require any POS integration. Both options can be set up quickly and efficiently, with relatively low ongoing administration costs.

1. Stamp Code (QR Code)

Scanning a Stamp Code

Customers can scan a code through the Stamp Me app to collect stamps.We will email you your Stamp Code after you register for Stamp Me. All you need to do is print it out and keep it in a safe place next to your register or transaction point.

It's that easy to implement a contactless loyalty program!!

Sign up for a free trial and see how it works for yourself.

2. OneStamps

One Stamps are unique codes that allow customers to collect one-off stamps, and automatically join your offer at the same time (if they have not already).

Once it is scanned and redeemed, the code automatically expires. The user – or any other user for that matter – cannot continue to earn stamps with that code. One Stamps can also have a predetermined expiry date.

One-time use OneStamp

The One Stamp codes can be printed onto basically anything. They allow the user to scan and earn rewards using the Stamp Me app, no matter where they are.

This validation method is ideal for businesses that tend to deliver their products straight to the customer’s door, like e-commerce businesses and fast-food restaurants.

A One Stamp code can simply be stuck onto the product packaging before delivery, and the customer has everything they need to earn loyalty points and redeem rewards from their mobile device at home.

Digital Loyalty Solutions for Enterprises & Brands

Brands should also take this opportunity to adapt to the changes and explore digital loyalty solutions that can help them provide safer loyalty solutions for customers, but also to create a direct communication channel with end-customers.

Receipt Scanning Loyalty Technology

Receipt scanning involves the customer taking a picture of their receipt on their smartphone, and uploading it into the digital loyalty app. From there, OCR (optical character recognition) is utilized to convert images of receipts into data.

Not only does this data tell the loyalty database customer X’s loyalty status towards reward Y, but it allows the business to segment its customers into numerous groups, which can then be sent targeted communications and tailored offers that appeal to their specific preferences.

Stamp Me_Receipt Scanning Loyalty Technology
Receipt Scanning technologies

As we highlight in our other article on how receipt scanning technology can benefit business owners, this option is the perfect loyalty solution for brands selling fast-moving consumer goods through intermediaries.

Having said that, it’s also well suited to e-commerce, and can accommodate brick-and-mortar businesses (like Sunrise Records, for example). Stamp Me offers this validation method under our Enterprise solution. Click here to learn more.

Email Course: 7 Days of Customer Loyalty

Sign up for our free, 7-day email course and become a customer loyalty expert!

We’ll also send you loyalty tips, trends and resources from time to time (which you can opt out of whenever you like).

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