Vesdia Supports Citizens Bank Merchant Network For Debit Card Rewards

Unlike similar programs that are restricted to online shopping, through the Citizens Bank Merchant Network, cardholders are eligible for the incremental points through in-store, online, and catalog purchases. With more than a dozen brands and nearly 11,000 bricks-and-mortar locations, the Citizens Bank Merchant Network is believed to be the largest coalition loyalty program ever assembled in the U.S. and features some of the nation's most widely frequented brands, including Hollywood Video, Restoration Hardware, Linens 'n Things, Timberland, Hickory Farms, and other top name merchants.

According to a recently published report by Aite Group, a Boston-based financial advisory and research firm, merchant funded rewards are expected to have a significant impact on financial institutions' rewards programs in the not-too-distant future. The firm estimates that $64 billion in purchases will be made at U.S. retailers that participate in merchant-funded financial institution reward programs by 2010. "Because they benefit virtually all of the parties involved - retailers, card issuers, and consumers - the proliferation of merchant networks are one of the next major developments we expect to see evolve during the next 24-36 months among players in the payments space," according to Gwenn Bezard, who authored the report. "Clearly, this new program from Vesdia and Citizens Bank is in the vanguard and setting a high standard for those that will follow."

"When we decided to enhance the value proposition of our debit card rewards program with a merchant network, it was important to us that the we not only provide cardholders with the ability to earn incremental points for their online shopping, but also - and more importantly - for their in-store purchases, where the overwhelming majority of cardholder transactions still occur," says Bill Koleszar, Senior Vice President of Cards & Rewards Marketing for Citizens Bank. "Given their depth of experience and track record of success, Vesdia was the only choice - and they have exceeded our expectations in every way imaginable."

"We are pleased to be part of a program that will set the standard for coalition loyalty programs in the U.S.," reports Peter Davis, Chief Executive Officer of Vesdia Corporation. "Best of all, we are in advanced discussions with several additional retailers representing important consumer spend categories, so we fully expect to help Citizens expand this program with the addition of new merchants later in the year."