American Express to partner with Foursquare Labs

This week, American Express, one of the largest credit card companies in the country, announced a new deal with Foursquare Labs Inc, the popular smartphone service that offers users the ability to “check in” virtually when they visit brick-and-mortar retail stores and entertainment venues.

Foursquare uses GPS and smartphone technology to track users. In addition, accountholders with the service are eligible to win discounts and prizes for using the service.

Under the new agreement, American Express customers who register their credit card information with Foursquare will be able to get special offers from participating merchants, The Wall Street Journal reports. The two companies say this could potentially boost retail sales and help budgeting consumers save money on purchasing.

“A big part of what we’re doing is building enhanced loyalty tools,” Dennis Crowley, the founder and chief executive of Foursquare, told The Wall Street Journal. “We’re seeing that things like this can drive users.”

Currently, the new service is scheduled to undergo a pilot program at Austin, Texas’ South By Southwest Festival. However, both companies predict the service will soon be opened to a wider number of users within the coming year.