Verizon invests in mobile loyalty program developer CardStar

Verizon Communications (NYSE:VZ) has invested $400,000 in CardStar, which develops mobile solutions that consolidate scannable membership cards and customer loyalty programs into a single application, enabling merchants to more effectively optimize offers and information to their consumers. Founded in 2008, CardStar boasts more than 2,000 merchant partners ranging from airlines to mom-and-pop businesses, with different solutions tailored according to a client's point-of-sale process--The Wall Street Journal notes that the startup also offers a backend system that effectively functions as a merchant portal, separating the CardStar platform from rival mobile loyalty program efforts. CardStar states that more than 1.4 million users have downloaded the app to date--its software extends across platforms including iPhone, Android and BlackBerry.

"The carriers have long been looking at the mobile wallet idea, especially mobile payments," CardStar CEO Andy Miller tells the WSJ. "But mobile payment is not here yet. So, what else is in someone's wallet? A lot of different cards, and the common thread is loyalty cards."

For more on Verizon's CardStar investment:
- read this Wall Street Journal article