FencyPay builds repeat business

Most reward & loyalty programs are complicated and rely on a business to do all the heavy-lifting.

What we have done is create a loyalty program that allows merchants to give their regulars discounts for repeat shopping while also benefitting from getting new customers...all from the same program.

More sales, more new customers...

  1. Customers earn a 5% reward (in FencyCoins) for every purchase they log in the FencyPay network. So if they spend $50 at a store, we deposit $2.50 into their wallet.
  2. Every reward consumers earned is tied to the store where they are earned with GPS coordinates...making them valid only at FencyPay merchants within miles from that store.
  3. As consumers shop within the network, they accumulate rewards. They can see how much of their balance is available at each one (based on the radius of the rewards they earned).
  4. Customers use their points at merchants on the network. They can redeem rewards at merchants they have never been to before or at places they usually shop.
  5. Merchants accept FencyCoins for transactions from customers for their purchases and we validate them on the network and are deposited in the stores wallet.
  6. Merchants can either re-use the FencyCoins to reward customers again or have us remove them from circulation for cash.
  7. FencyCoins that stay in the network get re-issued over and over again, moving from merchants, to consumers, and back to merchants again with no additional transaction fees.

What are the costs?

  • $19/month to be on the network
    • We provide signage to merchants
    • Promote active businesses on the network
    • We do all promotion to consumers and push them shop at merchants that we determine they will like
  • Merchants get billed for their half of the bonuses the FIRST TIME
    • Merchants where the reward is issued pay half of the bonus (currently 2.5%)
    • When the bonus is used and transferred to a merchant, that receiving merchant pays the other 2.5%
    • Once FencyCoins have been redeemed by the first merchant, they remain in the network at no cost. Coins in the merchants wallet get used to reward customers BEFORE creating new ones and being charged for them.
  • When merchants have us dispose of coins in exchange for USD, we charge a 6.5% fee to redeem them.

Example use

Let's say we have a customer with their first visit at a FencyPay merchant (Merchant A) and they spend $50. The customer earns $2.50 and we bill Merchant A $1.25 for their half to create it on the network and transfer it to the customer.

The customer continues to shop at other merchants. Let's assume they spend at three other merchants:

  • $25 at Merchant B ($1.25 bonus; 62.5 cents billed to that merchant)
  • $40 at Merchant C ($2.00 bonus; $1.00 billed to that merchant)
  • $50 again with Merchant A ($2.50 bonus; $1.25 billed to merchant)

At this point the customer has $8.25 in their wallet. They check their map and see that their rewards are valid at a new used bookstore they have been wanting to try (Merchant D).

They buy a used book for $6.00 and elects to use their FencyCoins. We verify the transaction with the merchant, deducting $6.00 from the customer balance (they'll have $2.25 remaining). We'll add the $6.00 to the merchant's wallet and bill them $3.00

At that point the $6.00 in Merchant D's have been full paid for by the 4 merchants and are fully funded on the network. If the customer returns to Merchant D and spends $12.00 on another book, they will earn 60 cents as a bonus and we pull that from Merchant D's wallet AT NO COST and transfer it to the customer. Those rewards will live on in the system and move around from merchant to merchant with NO FURTHER TRANSACTION FEES.

If Merchant D needs cash and wants to turn in $50 in rewards they have redeemed we will transfer the funds to their bank account minus a 6.5% fee (they'll get $46.75). Those coins will be removed from circulation and destroyed. More coins will be created again when consumers make purchases and the cycle repeats itself.

The best scenario is that merchants keep as many FencyCoins in the system as possible to move around the economy with NO TRANSACTION FEES.

Are you on board!?!?

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