Each merchant gets a unique set of their own reward and discount tokens. Merchants establish the rate of their loyalty reward tokens that get awarded for every unit of fiat currency spent by their customer (for example, 1 token for every dollar). Merchants also establish the conversion rate of the reward tokens when they are redeemed to actual dollar discounts (for example, $1 discount for every 10 reward tokens). So in this example, a buyer who purchased a $100 item, would receive 100 reward points.

Buyers accumulate these tokens in the LoyalShopper mobile wallet app. When buyers shop the merchant’s store again and want to use their rewards, they open up the wallet app and redeem their rewards – these tokens convert into a discount token with a code that can be applied at Shopify checkout. In our example, 100 rewards are converted into a $10 discount (those rates are flexible and configurable by the merchant).