In Facebook’s Latest Test, Discounts (and Data Collected) At Certain Merchants

MENLO PARK, Calif.—Facebook is experimenting with a new rewards feature in an effort to prove it drives brick-and-mortar foot traffic.

TechCrunch said it has discovered a previously unreported Facebook feature where users can scan a personalized QR code to obtain discounts or bonuses when they buy something in-person at certain shops.

“Some users see the Rewards feature listed in the More tab of their Facebook mobile app. Facebook Rewards could benefit users, merchants and the social network. People could earn free discounts just for being Facebook users. Merchants could lure people to their stores, earning a higher margin than the Rewards they give while fostering repeat customers and word-of-mouth promotion,” TechCrunch said.

Facebook could become more appealing to users while earning ad revenue from businesses looking to promote their Rewards giveaways via ads. The feature could also give Facebook more data on who buys what where, which it can use to improve the relevance of ad targeting and News Feed content, Tech Crunch said.

In a statement, Facebook told TechCrunch that it has been running the test over the past few months to “help businesses continue to connect with customers where they are, we’re running a small test that enables people to use the Facebook app to collect and redeem rewards when they make a purchase at a participating store.”

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