Points4Purpose expands loyalty & charity payment platform

Points4Purpose has expanded its platform to link payments, loyalty and charitable giving at the point of sale. The system is now available through payment platforms including Tyro and Clover from Fiserv.

The update targets businesses looking for new ways to retain customers and increase repeat purchases as loyalty schemes become more common across Australian retail. Points4Purpose has developed a point-of-sale-agnostic system that works across online and in-store transactions and allows promotions to be managed centrally.

The model combines cashback rewards with the option for shoppers to direct part of those rewards to charities and local causes. It is also supported by CommunityRewards, a multi-merchant consumer program that lets members sign up and spend across a network of more than 2,000 retailers, with cashback that can be spent, saved or donated.

Research cited by Points4Purpose shows almost 90% of Australian consumers belong to at least one loyalty program, while 47% have chosen one retailer over another because of loyalty rewards. Against that backdrop, businesses are under pressure to show that rewards schemes can do more than offer discounts and instead support customer retention over time.

Commercial push

The platform is designed for organisations including credit unions, community banks, franchises and retailers. It uses card-linking technology to support targeted marketing campaigns and is intended to work with existing payments infrastructure without requiring extra hardware or software.

Points4Purpose has also added senior leadership in the region, appointing Gunjan Kumar as Chief Commercial Officer, South Asia Pacific. It said Kumar brings more than 25 years of experience in loyalty and payments to support expansion with participating businesses in Australia and other markets.

The move comes as some merchants review the economics of their payments and rewards arrangements. In particular, the debate over card surcharges has pushed payment costs and customer incentives higher up the agenda for retailers, banks and other consumer-facing businesses.

Ivan Schwartz, Chief Executive Officer of Points4Purpose, linked the expansion directly to that shift in the market.

"The surcharge ban forces businesses to consider how to get the most value out of their payment and loyalty solution providers to replace their prior merchant service funded programs. Points4Purpose transforms the point of sale into a customer lifetime value platform. And what we've discovered is that when execution is well considered, this becomes a powerful acquisition platform for participating businesses. It also helps feature causes that are relevant and meaningful to the communities in which they operate," Schwartz said.

Charity link

A distinguishing feature of the model is its link to charitable giving. Rather than limiting rewards to vouchers or points within a single retail system, the platform lets consumers decide whether to keep their cashback or pass some of it to causes they support.

That approach comes as many charities face tighter operating conditions. Data cited by the company from the Australian Charities and Not-for-profits Commission shows charity operating expenses rose 8.6%, ahead of revenue growth of 7.5%. It also said 60% of Australian charities operate on less than AUD $500,000 a year.

For smaller charities in particular, donations generated through routine consumer spending could provide an additional funding stream. Points4Purpose said this gives everyday transactions a way to support local organisations while also offering businesses another route to engage customers.

Schwartz said the link between consumer rewards and community funding is central to the proposition.

"We connect everyday spending with cashback and community causes, helping brands give customers more reasons to return. This strengthens loyalty over time while making charitable giving a more natural part of daily life. It's a huge win for businesses, consumers and causes," Schwartz said.