DNP and Nihon Unisys Collaborate on CLO Service for the Customer Transfer of Cardholders to Retail Stores

Dai Nippon Printing Co., Ltd.
Nihon Unisys, Ltd.

Dai Nippon Printing Co., Ltd (DNP) and Nihon Unisys, Ltd. (Nihon Unisys) will collaborate on a Card Linked Offer (CLO) service. The new service references attribute information and settlement history, and extracts cardholders to which it forwards information on rewards. Cardholders can then use the rewards, such as cash refunds, when settling bills with their credit cards. The new service will be introduced on a sequential basis from autumn, 2014.

A feature of the new service is that credit card settlement data and POS at the retail outlets are linked, making it possible to ascertain not only of the outlet where a product was purchased, but also the product itself1. As a result, it is possible to run rewards on a product-by-product basis, and a variety of campaigns can be used, such as those at individual merchants, along with joint offers involving merchants and manufacturers.

1: Patent pending

[Background to Service Launch]

In the U.S, there has been an increase in CLO services that use cardholder attribute information and purchase history to offer cardholders that settle bills with credit cards high value added services. Cash based settlement remains the mainstream in the Japanese market. But, DNP and Nihon Unisys entered into a business alliance in August 2012, and plan to offer a CLO service to promote the use of credit cards in the retail and services industries customarily used by such Japanese consumers. DNP and Nihon Unisys are also making headway in negotiations with retail based merchants, so that cardholders can receive rewards on a product-by-product basis.

[Overview of CLO Service Offered by DNP and Nihon Unisys]

The new service uses big data, such as member attribute information and purchase history. It then extracts cardholders with the high probability of making product purchases, and distributes reward information, such as cash backs to those members, aiming to promote customer transfer to merchants and increased card usage.

  1. Cardholders can use the new service free of charge by accepting and consenting to the service contract on websites of smart phone applications offered by credit card issuers.
  2. Cardholders can select the rewards they wish to use on the screen, from among multiple distributed rewards. (No penalties shall result from not using the reward).
  3. Cardholders can receive automatic cash refunds at time of billing, by going to retail outlets where the reward selected by the cardholder is in operation, and settling their bill with a designated credit card. It is not necessary to present a printed record of the reward contents or the smart phone screen.
  4. Advertisers, such as the merchants and manufacturers can forward reward information to cardholders that meet desired conditions based on cardholder information and purchase history. (Targets of the offers are restricted to those members who have accepted service usage contracts). As no new operations occur at the retail outlet apart from standard credit settlement processing, member outlets can use the new service with no complications.
  5. Card companies can not only enhance settlement services, but can also look forward to increased frequency of usage and higher value card settlements.


No system configuration or operating costs are incurred by the credit card companies or member outlets adopting this new service. (Customization fees and system linkage fees may apply).

DNP and Nihon Unisys will receive incentive type transaction fees in line with member take up of special offers from advertisers, such as member outlets and manufacturers, and plan to divide those transaction fees with card companies.  

[Looking Ahead]

DNP and Nihon Unisys will offer this service to financial institutions, credit card companies and member outlets, aiming for sale of 1.5 billion yen in 2016.


* Product prices, specification and service contents mentioned in this news release are current as of the date of publication. They may be changed at any time without notice.