DNP to Launch Support Service for Loyalty Cards

Will achieve centralized management of both prepaid and loyalty cards

Dai Nippon Printing Co., Ltd. (DNP) is pleased to announce the launch of a support service for loyalty cards with prepaid functions. The new service will be launched on July 22 and is designed to facilitate the low cost, timely introduction of loyalty cards.

[Service Background]

In-house prepaid cards operated by various companies have seen remarkable growth, and outstanding issue values are expected to top the 1 trillion yen mark1 in FY 2017, a 74% increase over 579 billion yen in FY 2014. Against the backdrop of this market expansion, many loyalty card issuers have reviewed their operations and are making the shift to prepaid cards. Numerous companies are looking to use the projected April 2017 hike in Japanese consumption taxes as the incentive to introduce in-house prepaid cards, and are looking to increase their member base. Issuing companies anticipate more frequent store visits from consumers, higher unit sales, and improved cash flow from advances received. At the same time, consumers can make payments without using cash, which means shorter time waiting at cash registers.

In order to fulfill these needs, DNP will launch a support service for in-house prepaid cards that allows issuing companies to move into high gear operations within three to 6-months of decisions to adopt such cards, a reduction in lead time of 3-months compared to the current six to 9-months required. The new cards are compatible with both prepaid and loyalty points services, and allow issuing companies to perform membership management and data analysis.

[Service Summary]

The new service provides total support from establishing service specifications, through card manufacture, and the configuration and operation of management systems. The management system links DNP's in-house prepaid card introduction support service, which has developed a firm track record at many companies, and the Company's loyalty point card introduction support service. The hybrid type cards are pre-mounted with functions in demand by numerous companies, allowing for the low cost, timely introduction of high quality services.

With the new service, if the client is equipped with an on-site card reader, a POS cash register system and a card of some type, it is possible to add and subtract member loyalty points or prepaid values, and also confirm outstanding balances. Companies can also distribute sales campaign information and discount coupons via snail-mail or e-mail to match member card usage status. Meanwhile, card members can also confirm their own loyalty and prepaid card balance via the member's website, as well as receive sales campaign information and discount coupons.

[Service Features]

  • The new service is compatible with both loyalty and in-house prepaid card services.
  • It is now possible to offer a one-stop service for the functions necessary to operate loyalty and in-house prepaid card services, such as member management, e-mail distribution, website-based member pages, and balance confirmation.
  • The new service also makes it possible to use such cards as communication tools with members, including the distribution of e-mail magazines, and notifications made through the member pages.
  • And by offering a cloud-based shared system environment, it is possible to reduce adoption time by 3-months and cut costs.
  • The new service is compatible with various card media, such as magnetic cards, bar code cards and IC cards.
  • Usage histories and member attributes are collated and analyzed, making it possible to select target members, and promote sales via e-mail or direct mail.

img1.jpg

[Pre-Tax Pricing]

  • Start-up costs: From 5 million yen
  • Monthly operating fees: From 500,000 yen

· Costs apply for a base of up to 500,000 members. Additional fees may be levied for higher usage levels.

· Pay-as-you-go fees will be added to monthly operating fees in line with settlement amounts.  

· Other additional costs include card and carrier manufacturing costs, pamphlet production costs and POS cash register modification costs.

[Forward Looking Developments]

DNP will propose this new service to a broad set of industries and businesses, such as distributers and retailers, including supermarkets, drug stores, home centers, apparel makers, shopping centers and specialty stores, as well as restaurants and the entertainment industry, aiming for sales of 1.0 billion yen in FY 2016.

The Company also plans to link the new service with various settlement-linked marketing solutions, and improve value added via the introduction of business intelligence-based data operation services.

 

1: In-house prepaid card market released February 23, 2015 by ICT Research & Consulting Inc.
* 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.