When payment becomes loyalty

But what if loyalty required no additional action at all? What if recognition happened automatically – at the exact moment of payment? 

This is where tokenization changes the game. 

By embedding intelligence, loyalty, and simplicity directly into the transaction itself, payments become more than financial exchanges – they become the foundation of lasting customer relationships. 

"Payments are the most consistent interaction a company has with its customers. If we embed loyalty into that moment, we move from transaction to relationship."

Jimmy Hultenberger, Head of Offering.

Loyalty built into the moment of payment

Tokenization replaces sensitive payment data with a secure, unique identifier: a token. In a loyalty context, that token becomes a digital key that allows the merchant to recognize the customer automatically when they pay. 

The customer pays as usual. No app. No login. No extra step. 

Behind the scenes, the token securely connects the transaction to the customer’s loyalty profile in real time. The result is seamless identification at the point of purchase – both instore and online.

"Tokenization is often discussed as a security feature. And it is. But its real strategic value lies in enabling recognition – securely, automatically, and at scale. We embed this principle directly into our payment infrastructure and by supporting multiple tokenization methods, we enable merchants to choose the approach that best fits their channels, card schemes, and technical setup – while delivering the same strategic outcome: frictionless loyalty," says Jimmy Hultenberger, Head of Offering at Swedbank Pay.

One concept – multiple ways to recognize the customer

Tokenization is not a single technical solution. It is a framework that can be implemented in different ways depending on how merchants meet their customers. Swedbank Pay supports complementary token models to ensure loyalty can be embedded wherever payments occur. 

Identity token – loyalty across channels 

An identity token enables the consumer to connect their payment card directly to a merchant’s loyalty or discount program – either through the payment terminal or via digital payments. 

Once the card is onboarded, it is automatically recognized at future purchases, whether instore or online. The customer does not need to identify themselves again; the payment instrument becomes the identifier. 

For merchants, this creates a consistent and persistent customer link across channels. For customers, loyalty becomes effortless – participation happens simply by paying. 

Identity tokenization also supports pure instore environments, where a card number alias can function as the loyalty key without exposing sensitive data.

PAR (Payment Account Reference) – one identity across cards and devices

Consumer behaviour continues to evolve. The same customer may pay with a physical card one day and a digital wallet the next. Traditional card-based identification risks fragmenting that identity. 

Payment Account Reference (PAR) addresses this challenge. PAR represents the underlying payment account and remains consistent regardless of whether the consumer uses the physical card or a tokenized version in a device. 

This creates a stable, long-term customer identity across form factors – particularly valuable for merchants working with branded or co-branded card schemes where PAR is supported. 

With PAR, merchants gain a more accurate and durable customer view, strengthening analytics, personalization strategies, and lifetime value management. 

CNA (Card Number Alias) – efficient instore identification 

For merchants focused primarily on the instore channel, simplicity and speed are often paramount. 

A Card Number Alias (CNA) is a token generated between the payment terminal and the ECR system. It enables secure identification of the customer within the instore environment – even without completing a payment transaction. 

CNA provides a lightweight yet secure way to link transactions to loyalty profiles, reducing implementation complexity while preserving compliance and data protection standards. 

"There isn’t one single way to embed loyalty into payments. Different merchants have different realities. Our role is to make sure the technology adapts to them – not the other way around," Jimmy says.

Why this matters strategically 

Tokenization-enabled loyalty transforms transactions into relationships. 

• Frictionless participation – customers are recognized automatically. When no additional action is required, participation rates increase consistently and at scale.
• Higher identification rates – traditional loyalty programs capture only a portion of transactions. Embedded tokenization enables recognition at every payment, providing a far more complete and reliable customer view.
• Better decisions powered by better data – with accurate identification across channels and devices, merchants can reward meaningful behaviors, personalize offers intelligently, and shift from short-term discounting to long-term relationship building.
• Security by design – no sensitive card data is stored in loyalty systems. Tokenization reduces risk exposure and supports compliance with the highest security standards, protecting both merchants and customers.
• Operational simplicity – nothing changes for staff. Nothing changes for customers. Loyalty works in the background, embedded directly in the payment flow. 

From transaction tool to relationship engine

Payments are one of the few interactions that happen consistently across the entire customer base. Every transaction is a moment of intent. A moment of trust. A moment of decision. 

By embedding loyalty into that moment – through flexible tokenization models such as Identity Token, PAR, and CNA – we enable merchants to transform payment infrastructure into a strategic asset. 

"Loyalty should feel invisible to the customer, but invaluable to the merchant. That’s when you know it’s working," Jimmy adds. 

The payment terminal and online checkout are no longer just transaction tools. They become engines for insight, recognition, and growth. For customers, the experience becomes effortless. For merchants, every payment becomes more than a sale – it becomes the start of a deeper relationship. 

Because when loyalty is seamless, value is created in real time – for everyone involved.