Vancouver, Canada based startup RewardLoop has attracted $1 million in Series A funding from Madrona Venture Group, a private investor funding across early-stage startups in the information technology spectrum including consumer Internet, commercial software and services, digital media and advertising, networking and infrastructure, and mobile.

RewardLoop is the developer of a unique mobile loyalty platform. The program is installed in stores and enables businesses to identify their most profitable customers on the basis of purchase data, tracking real time dollars spent and items purchased based.  The idea is to helps businesses better understand transactional data and optimize their loyalty programs accordingly.

RewardLoop’s flagship, patent-pending universal Point of Sale (POS) adaptor, RewardLoop Connect, enables merchants of any size to easily deploy a secure, plug & play mobile loyalty program via existing POS system.

Businesses need to install the adapter that connects to their point-of-sale system – their cash register. Then, whenever customer makes a purchase, a QR code is printed at the end of their receipt, which automatically credits loyalty points or stamps to their account.

The company mobile loyalty platform is also integrated and compatible with NFC and QR-codes mobile payment systems.

“When we started RewardLoop, it was clear that mobile represented a powerful way to transition loyalty programs from no-tech paper punch cards to something valuable for both the merchant and customer,” said RewardLoop co-founder and CEO Jeff LaPorte. “Our mobile loyalty solution offers unprecedented insight into customer data for merchants small and large – this changes the game for millions of retailers.”

RewardLoop started commercials trials of the technology in last August. The funding will allow the company to come out of the trail testing stage to aggressively expand production of the connect adaptor across various merchant networks.

A rise in mobile loyalty programs for marketers 

Social commerce, or the act of buying online, and mobile payments have become two inseparable trends. Consumers are sharing and researching information on products and services before they buy, doing so on the go and finding that they can be rewarded for exchanging certain data points that represent their actions.

A recent e-tail study conducted by Billeo, Inc. reveals that brands and merchants now look to increase customer loyalty, as online shopping presents a huge opportunity for them.

Swipely, the online sharing service provider for marketing local businesses, is developing a credit card loyalty program for small businesses with a new set of trading tools. The program simply turns purchases into royalty program, which consumers can redeem in terms of cash rewards.