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The global payment processing company First Data is introducing Perka, a cloud-based customer loyalty application, for SMB merchants to increase customer personalization and connection. The app will be available on First Data's Clover station, a tablet POS that was also bought by First Data in 2013.

After installing the Perka app, a customer is allowed to view a list of participants and loyalty promotions available on their smartphone. The program contains a punchcard service that can give perks such as a free lunch item or drink after a certain number of purchases are made. Perka also includes an option that rewards customers based on the amount of money they spend. However, the app depends on the consumer to activate it upon entering a store in order for the SMB merchant to receive a signal and greet them. This simple task often impedes the app's effectiveness, particularly in a retail/customer loyalty scenario according to ZDnet.com.

First Data backs the app's engagement power, saying the personal connection it brings between a merchant and a shopper is a key factor in building loyalty and repeat visits. In a written statement, Guy Chiarello, president of First Data, said, “Loyalty programs are an effective method to increase sales and build a stronger base of regular customers. With Perka, we are adding valuable functionality to First Data's SMB offerings, taking advantage of our unique position and scale to deliver a powerful solution to small and medium-sized businesses.”

With more than six million SMB merchants, First Data has an incredibly large footprint in the credit-card processing world. Its purchase of the Clover station in 2013 is expected to help the company keep its feet firmly planted in the industry. Like many of the other offerings focused on small retailers, the Clover solution comes pre-integrated, to make it relatively simple for stores with few tech resources to run the application. It has an 11.6-inch touchscreen with integrated card reader, a cash drawer, and a thermal receipt printer. The Clover solution comes a high-resolution camera, which offers instant QR code recognition. Applications using the Android (News - Alert)-based system are hosted in the cloud, but the system can be run in an offline mode during a loss in Internet connection.

As today’s small business owners continually look for modern and measurable ways to boost their bottom lines and create personal connections with their customers, a robust loyalty program can help. First Data is hoping to capitalize on this opportunity by bringing Perka into its business operations to increase productivity, engagement and efficiency. For more about First Data, visit the company's web site at FirstData.com.