Startup MoLo Rewards is a mobile software that allows you to scan your phone at the point of sale to automatically redeem all your coupons or loyalty rewards using the company’s Near Field Communication (NFC) or Radio Frequency Identification (RFID). Today, the startup is launching time-sensitive deals for 50 percent or greater in savings at local businesses and retailers to promote the adoption of the company’s point of sale technology. MoLo Rewards has launched its deals in San Diego and Toronto, and expects to expand into three more cities by the end of the year.
Similar to the model that is currently used by Groupon, MoLo Rewards showcases one deal per city and shoppers then have a limited period of time to purchase the deal. Each deal must be sold to a minimum number of people in order for the deal to “on.”
MoLo Rewards’ branded RFID tag allows users to redeem their coupons from their mobile phones at the point of sale and requires RFID equipped terminals in store. So far, only 150,000 businesses are equipped with RFID terminals. Once the transaction is complete MoLo Rewards issues loyalty rewards which accrue allowing for the end user to obtain various goods and or services. And MoLo Rewards also provides loyalty points to users for every dollar they spend which can in turn be used for tangible “rewards” such as a flat screen TV or
The key to MoLo Rewards is the ability to completely eliminate paper, SMS, bar codes or other clumsy coupon solutions. A graduate of the Founder Institute, MoLo Rewards presented at the DEMO conference last fall. In terms of the group-buying side of things, MoLo will face competition from Groupon, LivingSocial, and the many other identical collective buying sites that have popped up recently to serve local deals to consumers. Molo’s advantage is its mobile access and portability but it is only a matter of time before other collective buying sites develop mobile technologies and apps to equip consumers with coupons on the go.