This document discusses digital payments and loyalty in the digital age. It provides an overview of digital payments and how they are not new, examines the differences between purchasing and paying. It also compares Amazon and Walmart's approaches to digital payments and loyalty programs, noting Amazon's heavy focus on online shopping and Prime membership while Walmart experiments with brick-and-mortar innovations. Finally, it suggests loyalty programs will move beyond just rewards points by focusing on ease, security, utility and forming multidimensional relationships with customers.

1. Digital Commerce:
Loyalty In The Digital Age
Ariel Blum
Internal Use Only
1
“There Is Nothing New Under The Sun”
- Ecclesiastes

2. Overview
Topics Slide Number
Digital Payments: New? Not So Much… 3
Digital Payments: All Aboard 4
Purchase v. Pay 5
Tale of Two Titans: Amazon and Walmart 6
Loyalty: Going beyond rewards 7
What’s Next
8

3. Digital Payments: New? Not So Much…

4. Digital Payments: All Aboard
Checkout Payment Pays Merchant Payment
4
P2P

5. Purchase v. Pay
By embedding a frictionless payment options, Merchants,
Networks, Issuers and Fintech players’ are all pushing for not the
initial transaction, but the subsequent transactions often sacrificing
margins at the onset to build that base
Pay is the modern day version of loyalty

6. Tale of Two Titans: Walmart v. Amazon
Pays Walmart Pay Amazon Pay
Brick & Mortar 4,600+ stores in the US Whole Foods
In store Innovation Drop returns, Spatialand (VR) Amazon Go
Online
Jet.com, Bonbos, Modcloth,
Moosejaw
50% of product searches now
originate on Amazon
Shipping Free 2 day shipping Prime
Flexibility Walmart Labs, Store No 8,
investment in technology with
innovation at its core

7. Loyalty: Going beyond rewards
Ease and
Security
Utility
Rewards
Loyalty PyramidPay = Loyalty
 Loyalty must be viewed as
multidimensional, no longer just “Spend
X, Get Y” mentality
 Touch points must be across a variety of
mediums
 Frictionless engagement and transactions
are a must
 Rewards take time to be issued – is there
an instant solution or recommendation
engine alternative?
Rewards will go beyond points as points a means to an end

8. So, What’s Next?
Beacons
Commerce in new channels
Blockchain Tokenization