Dynamics Gets Set to Push its ePlate Loyalty Platform into Entertainment, Retailing

The music and movie industries as well as retailers are next on startup Dynamics Inc.’s list of targeted industries for its ePlate loyalty application. Launched in April, ePlate embeds computer architecture into a credit card, enabling consumers to rewrite information from a choice of loyalty programs to the card’s magnetic stripe at the touch of a button.

“Gaming is already a huge vertical for us, but we are talking to record labels, musicians, entertainment companies, and retailers about ePlate applications,” says Jeff Mullen, chief executive of Pittsburgh-based Dynamics. “Eplate is a platform to take loyalty applications into niches no one believes are payment-oriented, but are, through genuine one-to-one marketing.”

Consumers loading ePlate apps can earn rewards and digital trading cards, be entered in sweepstakes, or make charitable donations each time they make a purchase using their ePlate card. Consumers can select which of two applications on their card is activated by clicking a button on the card that writes the information from the designated loyalty app to the card’s magnetic stripe.

When the card is swiped, information is sent to the loyalty-application provider, which then credits rewards to the consumer’s account or collects the donation. Shoppers making a card-not-present transaction can activate an application by sliding the toggle on their virtual ePlate card contained in their online account page.

To give third-parties an incentive to develop loyalty applications, card issuers pay the application developer 0.25 basis points for each transaction. “The 0.25 basis points are an incentive for application developers to create exciting applications and rewards that will make the card top of wallet,” says Mullen.

Game maker Evil Genius earlier month launched the Black Friday game app on the ePlate platform. The game allows consumers to simulate the madness of shopping on Black Friday, i.e. the traditional start of the holiday- shopping season. Evil Genius is pooling the money earned on each transaction to offer as prize money to the player with the highest weekly score, according to Mullen.

“Retailers can create loyalty applications that drive card use and earn them 0.25 basis points on each transaction that is a rebate on their interchange fees,” adds Mullen. “Not surprisingly, this concept is of great interest to them.”

Kansas City, Mo.-based UMB Financial Corp. is the first bank to sign up to issue cards on the ePlate platform. “We think there is a lot of room for innovation with this technology, because how the product engages with the consumer changes as the consumer changes,” says George Schmelzel, director of credit cards for UMB. “Consumers are reward -oriented and they are looking at payment as more than just payment, they are looking for ways to capture additional value from it.”

Mullen says Dynamics, which makes its application programming interfaces available to developers, began working with UMB in 2010 to develop and test the technology. Dynamics also provides the technology behind Citigroup Inc.’s Citibank 2G card, which allows consumers to pay for a purchase using rewards they have earned by pressing a button on the card. Cardholders can also chose whether to use the card as a credit card or debit card with the push of a button. The card, which retains the dimensions of a conventional credit card, debuted in 2010.

“Our technology is about giving consumers choices,” says Mullen. “Banks need to be more consumer-oriented and offering choice is a consumer- oriented business model.”