First Data used the occasion of the Democratic National Convention at Denver's Pepsi Center late last month to introduce its own kind of "Change"—a new technology for promotional products and gift cards. The company distributed limited-edition pins to media and delegates at the convention, which the recipients could use to pay for up to $10 worth of refreshments at participating Pepsi Center concession stands.
The value is registered on a sticker (branded the "First Data GO-Tag Solution") attached to the pin, which can be scanned at readers at the point of purchase.
"It's been a new and exciting experience for folks to be able to just walk up, wave this technology and check out really quickly," says Bruce Dragt, senior vice president of product development. The sticker can be affixed to anything attendees would carry around, not only souvenir pins but name badges or lanyards. According to First Data, with approximately 5,000 Go-Tag pins distributed, there were 3,103 transactions over the three days of the transaction. Nearly 50 percent of the pins were used, with an average transaction value of $6.57.
Dragt emphasizes the value these have for boosting brand awareness or as a promotional product, by attaching the sticker to items that companies would like individuals to hold on to. It also offers a new direction for gift cards, as shifting to a contactless technology liberates the card's value from the plastic card itself.
First Data sees these stickers as an early stage in the contactless payment technology, which will eventually be able to be loaded directly into mobile phones or MP3 players ("whatever item you think that people will carry along with them regularly," Dragt says) and used like a gift or debit card.
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