Shopkick Shows Wallet Potential

Shopkick, the location-based mobile app that rewards users for walking into stores, is teaming up with InStyle to provide content available to Shopkick users. Under terms of its content partnership with InStyle, Shopkick will provide some of the magazine’s content to two million app users, including a “Shop By Color” virtual pop-up store. The move shows there are ways to use check-ins to enrich user experience. In a broader sense, Shopkick also suggests what might be an attractive feature of developing mobile wallet services.

Shopkick’s business model revolves around business owners knowing when a user is in the store. Shopkick uses automatic check-ins: When a user opens the Shopkick app and walks into a store, the app determines where they are and gives them points (“kicks”). “Until now, the only time a retailer really knew you were there was when you swiped your credit card. That’s precisely the wrong time to start the conversation,” said Evan Tana, VP of product management.

Shopkick currently has over ten partners—like Best Buy and Target—and its hardware installed at 2700 stores. “Our entire system is built around monetary value that a retail brand is sharing with the customer,” said Tana. “The last thing they want to do is reward a customer who’s not actually in the store.” He noted that Shopkick knows when shoppers cross the threshold of a store but can’t identify precisely which aisle they’re in.

Shopkick's business suggests potential application for Google Wallet, Isis and other wallet services.

Shopkick Partners With InStyle Magazine, Toys R Us