[shoota]

This seems to compete with some of the benefits of using Google Wallet. Although, I suppose a Google Wallet based loyalty card requires a lot larger investment by the business.

Also since a QR code is just an image and not something more complicated like an NFC tag what's to stop someone from taking a picture of it with their phone and scanning it multiple times at home?

edit:* well looking at their FAQ they say this: Patent-pending technology guarantees the integrity of your loyalty program. GPS triangulation, velocity analysis, and statistical variation keep things secure.

That still has to trust the smartphone to report the correct GPS and velocity, additionally I think faking the statistical variation might not be too difficult.

[donw]

Faking the variation shouldn't be hard at all, but how many people would be willing to take the time and risk being prosecuted for fraud in exchange for some free coffee?

Even if 10% of customers abuse the system, it's still a net win for the business. They'll have to cough up some free coffees or sandwiches, but the fraudster is still in the shop and likely to pay for incidentals that go with the promotion; e.g., a drink or chips to go with their sandwich, croissant with the coffee, etc.

[jedc]

I would guess that this might eventually tie into Google Wallet in some way. Perhaps it's essentially the loyalty card part of Wallet just re-packaged until more businesses deploy the new machines at registers?

[steelaz]

I think printing QR code on a receipt would solve fraud issue, but again, requires additional investment.