To encourage foot traffic among Square merchants, the mobile payment company has launched a digital loyalty card feature for its Square Register and Pay with Square apps.

The update provides customers with a digital version of the traditional punch card for each Square merchant they visit, and allows you to give customers automatic discounts or award points.

Square has also added additional features designed to attract new customers, such as “first-visit” specials. For example, you could offer a discount or complementary product/service for new customers. Individuals will also be able to track their visits on an in-app punch card to see how close they are to accessing the next deal.

Additionally, as a merchant, you will be able to take advantage of in-app reporting, where you’ll have access to detailed analytics on sales by hour, day, or week, and an inventory library, where items can be categorized for easy sorting.

Since its launch in March, Square Register merchants are “five times more active on a weekly basis” than those using the Square Card Reader, according to Square. Additionally, those merchants also process approximately twice as much revenue.

Although it was already possible to take advantage of loyalty features, Square’s latest update make the process more user-friendly. As a result, the loyalty program doesn’t rely on customer actions, such as scanning a barcode — a quality that could boost both merchant and customer adoption.

[Via: VentureBeat, Image credit: VeloBusDriver]