Not into coupons? This startup ties deals directly to your credit card

by Andreas Rekdal
December 14, 2016

Most of us like to save money when we can. But the hassle of presenting coupons or carrying loyalty cards around in ever-shrinking wallets, or on ever-growing keychains, keeps many of us from taking full advantage of loyalty programs and special offers.

Chicago-based customer loyalty startup Rewards21 feels your pain. Co-founder and CEO Cary Chessick, former president and CEO of Restaurant.com, wants to tie your rewards profile directly to your credit card and offer you cash back for your dining experiences.

“Nobody knows you have a deal, you don’t present anything to a server and you pay normally and leave,” said Chessick. “And then you get cash back directly on your card.”

Rewards21’s process is designed to be as non-intrusive as possible. Diners interested in using the program can sign up on the company’s website by providing their credit card and contact information. Once a profile has been set up, Rewards21 works with the customer’s credit card provider to track when you’re spending money at in-network restaurants. When a customer’s cash back balance reaches $21, that $21 is automatically reimbursed.

Chessick thinks Rewards21’s approach can help popularize rewards programs among new demographics who haven’t traditionally participated in diner loyalty programs. Many diners, he said, may be averse to pulling out a coupon or a loyalty card on a date or during a business lunch.

“Everyone presents a credit card,” he said. “There is no change in the consumer experience, or in the waitstaff experience, for that matter.”

Founded in early 2015, Rewards21 officially launched at the beginning of December 2016. Chessick said the program had thousands of participating restaurants all over the country at launch.

The emerging market for card-linked offers, said Chessick, are part of a broader trend toward online-to-offline commerce — that is, marketing strategies that engage consumers online to sell real-world services and experiences. He credits companies like Uber with educating consumers about the benefits of putting a card on file for the sake of future convenience.

Although the company is currently keeping its primary focus on the restaurant market, it's already experimenting with several additional verticals. The company also offers reward cards for employers looking to incentivize their employees, which can be redeemed by taking a photo of the bill.

Rewards21 announced on December 1 that it has raised $2.75 million in equity funding. Although he declined to say how many people currently work for the company, Chessick said many of Rewards21’s early employees are connections from his and co-founder Gary Gebenlian's Restaurant.com days.

The founding team’s extensive network in Chicago and across the country has meant that the company hasn’t had to advertise for any of its open positions, but Chessick said he is always open to talking to new people who are interested in joining the team.

As for the decision to launch his next venture in Chicago, the serial entrepreneur said that call was a no-brainer.

“I would never consider starting anywhere else. It’s such a thriving ecosystem right now,” he said. “We’re just so lucky to have great people on the team, great investors backing us and a great city to build in.”

Image via Rewards21.

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