Gift card and loyalty solutions provider Factor4 is working with NCR Corporation in order to integrate Factor4’s gift card program with NCR’s Silver and Counterpoint point-of-sale (POS) solutions, according to a press release.
Factor4 CEO Dan Battista said in the release that the company is partnering with NCR and will “provide their customer base with a fully integrated, omnichannel gift card solution that includes online, in-store and mobile functionality as well as enables contactless transactions.”
“Factor4 and NCR are market leaders in rolling out contactless and eCommerce solutions that have enabled merchants of all types to weather the pandemic, adapt to market changes and embrace consumer preferences,” he said, according to the release.
The partnership will attempt to work with the contactless payments that have become popular amid the pandemic, with 65 percent of consumers preferring the method, according to a Visa study, per the release. In addition, 74 percent of small businesses expect consumers to continue using contactless payments.
Thus far, 82 percent of small business owners have made updates to their operations to help meet the demand for new digital modes of payment, the release stated. That’s an increase from 67 percent from last summer.
In 2020, Factor4 saw record growth as it could provide those kinds of digital solutions for merchant partners, according to the release.
The 2020 holiday season saw a glut of virtual spending, and with that came a need for loyalty and gift card programs to help consumers make easier purchases, Battista said.
He told PYMNTS that the virtual programs had sort of acted as interest-free loans in the way they allow small businesses to make money even while being closed or only open to a limited extent amid the pandemic. Meanwhile, consumers looking for value also found use in gift cards. According to Battista, gift cards have boosted spending, with consumers spending 30 to 40 percent more than the value of a gift card when they redeem it.