Pathmark, CVS Test Loyalty Rewards Payment Cards

Pathmark will soon test a combination debit and loyalty card

Pathmark Stores is testing a combination loyalty and payment card designed to speed up transactions and ease the number of plastic cards shoppers carry in their wallets.

The Pathmark Advantage Payment Card merges the company’s loyalty program, the Advantage Club Card, and debit payment option onto one card. Payments will be deducted from customers’ checking accounts when they use the card, the company said.

Pathmark will run a four-month to six-month pilot program starting in December at five to 10 New York stores, spokesperson Rich Savner said. It marks the first program of its kind for a supermarket chain, he said.

The goal is to make transitions more efficient and offer customers convenient payments options. Debit card usage is meant to ease wait time in lines.

“It’s really meant to save people time,” Savner said. “Anytime you can offer customers convenience, we think it is worth piloting.”

About 85% of Pathmark’s customers are enrolled in its loyalty program.

Pathmark has teamed up with HSBC Finance Corp. and the Tempo payment network on the pilot program. Outside of Pathmark, customers who sign up will also be able to use the debit functionality at more than 200,000 other retail locations in the U.S.

In-store signage, circulars and direct mail to loyalty card members will introduce the program.

HSBC already is testing a similar program with CVS/pharmacy for its CVS ExtraCare Plus loyalty rewards payment card in 141 Indianapolis-area stores. The card, which launched in September, combines rewards and payment on one card.

CVS will test the card for six months. And so far, “initial results look good,” Cindy Savio, HSBC spokesperson said of the program.

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