Dunkin’ Donuts integrates Masterpass with mobile app, loyalty program

Dive Brief:

Dunkin’ Donuts has integrated Mastercard’s Masterpass into its Dunkin’s Mobile App, allowing customers to use the digital payment service to purchase and reload virtual Dunkin’ Donuts cards on DunkinDonuts.com and on the app, according to a company press release.
Dunkin’ Donuts customers also can enroll their Masterpass-funded virtual DD card in the DD Perks Rewards Program and earn points toward free Dunkin’ Donuts beverages for every purchase they make at participating Dunkin’ Donuts locations.
The company is also rolling out an integrated marketing campaign next week with a series of humorous new television spots and digital content that show how Masterpass in the Dunkin’ Mobile App can "help win the morning."

Dive Insight:

“At Dunkin’ Donuts, we show appreciation for our loyal guests though technologies that make enjoying Dunkin' coffee, food and other beverages as fast and easy as possible,” Scott Hudler, chief digital officer at Dunkin’ Donuts, said in the statement announcing the integration. “Leveraging new digital payment options like Masterpass by Mastercard provides guests with another quick and convenient way to run on Dunkin’ through our Mobile App, and helps us continue to stand apart for an unsurpassed in-store experience.”

The key word there is "loyal," as Dunkin' Donuts is primarily focusing its newest mobile efforts on members of its customer loyalty program. Last year, the retailer introduced Dunkin' Donuts On-the-Go Mobile Ordering nationwide, but only for members of its DD Perks rewards program. Then, just a couple of months ago, the retailer began offering the mobile order-ahead capability through Google's Waze app, but again only to loyalty program members. Now, it is letting those same program members refuel their DD gift cards and DD Perks rewards cards with Masterpass.

Taking care of your most loyal customers is never a bad idea, and Dunkin' Donuts reportedly has about 6 million DD Perks program members who are responsible for more than 10% of the company's revenue. Still, that's far fewer than the roughly 13 million people who are Starbucks Rewards members, so Dunkin' Donuts has some catching up to do. Although a smaller program membership may help Dunkin' Donuts avoid the in-store traffic congestion problems that Starbucks had when its Mobile Order Ahead & Pay feature proved to be too popular.

In any case, Mastercard won't complain about the opportunity for 6 million DD Perks members to use Masterpass in connection with Dunkin' Donuts rewards cards. The mobile digital payments market continues to be crowded and competitive, and Mastercard remains intent on spreading Masterpass as far and wide as it can. Integrating the platform with the mobile app and rewards program of a major retailer will certainly help.