Rewards credit cards are as popular today as they've ever been according to recent research from Cardbeat, a syndicated research report published by the Auriemma Consulting Group, Inc. (ACG). While a number of banks today are actively marketing their own, bank-sponsored rewards programs over the brands of co-brand and affinity partners, the concept of credit card rewards programs has actually increased in recent years. For example, the incidence of credit card rewards programs increased from 56[[%]] in February 2011 to 62[[%]] in JanuaryFebruary 2012, due in part to increased offers from credit card issuers.

Consumers who have rewards credit cards tend to view the rewards as their primary reason for carrying the card, and four out of five (80[[%]]) of them also tend to use those cards most frequently, even though most have several other credit cards in their wallets to choose from. Credit card issuers also score very highly on the redemption process. 82[[%]] of respondents indicate they have actually redeemed card rewards, and nearly all (93[[%]]) of them say their experience in doing so was positive.

Source: Auriemma Consulting Group, Globe Newswire

According to an article in U.S. News & World Report, "Starbucks makes it easy for customers to buy coffee. So easy, in fact, that they don't even need cash or a credit card. A smartphone will work just fine. To capitalize on the growing popularity of these devices, Starbucks introduced mobile payment technology in January 2011 that enables purchases with the wave of an iPhone, Android, or Blackberry."

The article continues, "Starbucks says the technology is boosting sales. Since the launch, customers have made 45 million mobile payments in the United States and are now averaging a million transactions a week, says Linda Mills, a company spokeswoman. She adds that Starbucks has experienced a ten-fold increase in mobile-payment use from March 2011 to March 2012. "If you compare year over year, or month over month, it's growing very rapidly," Brotman says."

To learn more about My Starbucks Rewards, smartphones and mobile payments, click here for COLLOQUY's, "The Device Race".

CIBC and Rogers Communications have announced an agreement to launch Canada's first joint mobile payment solution, allowing Canadians to pay with their CIBC credit card at the checkout counter using their Rogers "Near Field Communications" (NFC) enabled smartphone. Beginning later this year, customers will be able to use this payment capability at merchants across Canada where contactless credit card payments are accepted.

This announcement represents the first time a bank and a wireless carrier have joined forces to offer a commercially available mobile payments solution to Canadians that leverages the secure SIM card inside an NFC-enabled Rogers smartphone. This new solution aligns to guidelines announced yesterday by the Canadian Bankers Association for mobile payments in Canada, as well as those developed by respected international associations such as the GSM Association (GSMA), the association of mobile operators and related companies dedicated to standardizing and supporting GSM technology.

Some of the key features of the new mobile payments solution include:

• Full access to a client's existing CIBC credit cards on their smartphone at no extra cost - whether Visa or MasterCard - this gives clients the opportunity to earn loyalty points on purchases as they do today.
• Multiple layers of security - Paying with your NFC-enabled smartphone will be as secure as using your credit card today. Clients will receive the same fraud protection they do with their contactless credit card, and secure encryption technology will add to the layers of security already in place on credit card purchases. Clients will also have the option to set additional password protection.
• No "stickers" on your phone - this new payment capability will leverage the secure SIM card inside a mobile device for payments, meaning clients can manage their credit card credentials on a secure platform, and won't need to worry about stickers attached to their phone.

This new CIBC mobile payments capability will be available on select BlackBerry smartphones on the Rogers wireless network when the solution launches later this year, with additional device choices for clients available following launch.

Source: CIBC, Rogers Communications Inc.