Google purchased Punchd, whose team of entrepreneurs created loyalty cards on Android smartphones donated to Cal-Polytech's computer science department. Punchd could be added to Google Wallet.
(NASDAQ:GOOG) confirmed it has purchased Punchd, a maker of loyalty cards for keeping
customers coming back to patronize local businesses.
launched in 2010 to provide loyalty cards intended to boost user engagement
between shoppers and stores, restaurants and other businesses.
Co-Founders Reed Morse and Grantland Chew "whipped up the first prototype
in an Android development class" using Android phones donated to Cal
Polytech Institute's computer science department.
a senior project, and later a business, around our idea. And while our team of
entrepreneurs has stayed small, our ideas have not. We're excited to announce
that Punchd has been acquired by Google," noted the Punch
team in a note on its Website July 11
joining Google's teams in Mountain View, Calif. eWEEK
asked Google what the Punchd team will be working on, but a
spokesperson declined to say at this time, adding: "They've
built a cool and efficient way for customers to engage with local businesses,
and we think they'll be a great fit for our mobile and local teams."
premise is simple. When customers buy a product that's part of a loyalty
program, the participating store lets the customer scan a QR (Quick Response) code
they keep behind the counter.
The Punchd application keeps track of how many times the QR
has been scanned, and pings the customer when their loyalty
reward becomes available, according to GigaOm
technology, or something approximating it, appears destined to be used to
fortify the one-two punch of the Google Wallet mobile-payment service.
an application platform that lets shoppers tap-and-pay for goods from
participating stores using their Android smartphones is launching this summer
in New York and San Francisco. The service is being paired with the Google
Offers local deals service.
add Punchd-style loyalty cards to the mix to keep customers frequenting coffee
shops, restaurants and other local businesses and purchasing goods with Android
smartphones that use the Wallet service, which is based on NFC (near field
has about $36 billion in its coffers, made some 48 purchases in 2010 and has
acquired more than a dozen so far this year.