According to the Wall Street Journal, Foursquare has partnered with American Express to offer discounts for shoppers who use Foursquare.
For American Express cardholders, it is an expansion of their credit card service and a way to engage their customers. Vice Chairman for AmEx told Wall Street Journal that they want to go where the customers are. They want to attract the younger and more tech savvy generation, which shows that the credit card company is eager to follow consumer trends and get on board the social networking train.
It will work like this: AmEx customers can register their cards in Foursquare to get access to special offers. When they have purchased a special offer, they will then receive a notification that they have redeemed the offer.
Mobile is future
The partnership shows that large company like AmEx recognises that mobile services will have significant influence in the future. With the dissemination of smartphones, we will probably see more and more services providing the ability to purchase with the mobile on the go.
The location-based network Foursquare has also been challenged with the launch of Facebook Places that have Deals as a similar service. With this partnership, Foursquare has the opportunity to gain more users or to make existing ones use it more frequently. It adds more possibilities to the service and encourages shops and stores to feature specials in Foursquare and this way increase sales.
The partnership will pilot during South by Southwest Festival in Austin, Texas, next week. Next step is to expand the service to other cities, but they have not yet told of any concrete plans.