Eliminating Fraud in Digital Coupons

Phone screen showing digital coupons
Ahalogy Partner, The Pacific Standard, uses digital coupons on her phone.

In a statement to CPGmatters, Quotient founder and CEO, Steven Boal, said that “Digital coupons can be fraud free.” This is a big deal, especially as the industry moves away from traditional paper coupons in favor of digital.

While we’ve seen the adoption of digital coupon usage grow in recent years, COVID-19 has only accelerated that trend. In an effort to reduce the physical spread of Coronavirus, BJ’s Wholesale Club announced in March that it will no longer accept paper coupons for the foreseeable future. They’re not alone, either. Peapod—which services the Ahold-Delhaize chain of stores—Weis, and Hannaford have also stopped accepting paper coupons for their grocery pickup and delivery services in recent weeks.

However, just because stores have stopped accepting paper coupons doesn’t mean that consumers have stopped searching for deals. Quotient internal data shows that coupon redemption rates increased in March compared to pre-period weeks as consumers sought value to mitigate their increased grocery spend. With this increase in redemption, CPGs need to know that their digital coupons are protected against fraud.

“On our own Quotient Retailer iQ platform, we’ve had zero reported instances of fraud—and that should be expected. We designed the platform to be fraud-free, and the platform will not allow redemptions in excess of individually identified coupons delivered. Unlike offline paper coupons, digital coupons on the Quotient platform provide no opportunity for fraudulent behavior.”

Steven Boal, CPGmatters

Boal claims that digital coupon fraud shouldn’t be a concern for CPGs. “Fraud with digital paperless coupons on the Quotient Retailer iQ platform is never even a topic of discussion with CPGs or retailers. We designed our system to be fraud-free, with multiple checks and balances that maintain the integrity of our platform.”

With this move towards paperless coupons, Boal says the industry can expect a decline in fraudulent activity. This is a positive trend as brands continue to adopt digital coupons instead of paper.

To learn more about fraud in digital couponing, check out the full story from CPGmatters.

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