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 store's wallet.
  6. Merchants re-issue the FencyCoins as rewards to customers again as the cycle repeats itself.
  7. FencyCoins that stay in the network get re-issued over and over again, moving from merchants, back to consumers, and re-paid 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
    • Customers use The Plaza to figure out where to spend their rewards next
    • They may visit a store that's new...or return again to their favorites
  • 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 instead of 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

A customer has 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 in the FencyPay network. 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)

After those 4 purchases the customer has $8.25 in their wallet. They check The Plaza and see that their rewards are valid at a new used bookstore they have been wanting to try (Merchant D; who happens to be within the 5 mile radius of stores A, B, C).

They buy a used book for $6.00 and tells the cashier they wish to use FencyPay rewards. We verify the transaction with the merchant (you do this in the merchant dashboard), 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 wallet have been fully paid for by the 4 merchants and are considered "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 later and requests to turn in $50 of 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 when the merchant wallet balance is too low and the cycle repeats itself.

The best scenario is that merchants keep FencyCoins in the system to move around the economy with NO TRANSACTION FEES. We place limits on how much and how often merchants can destroy rewards to maintain the viability of the platform and to prevent fraud or abuse.

Are you on board!?!?

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