Now a days, Customer loyalty system that uses bar code based or magnetic strip cards have earned popularity in market. But currently customer needs to carry the cards they acquired to get the facility of loyalty program provided by the merchant. So the idea is to have one medium which will allow customer to have multiple loyalty cards virtually (e.g. in only one NFC smart card or NFC enabled mobile phone). In our general and market research, it found that NFC technology can contribute to abridge or simplify daily activities like mobile payment or transactions. NFC is a short-range radio technology. NFC transmission range is so short, NFC-based transactions are inherently secure and shortly. If person wants to purchase something than he/she needs to carry credit card or debit card also. The paper includes instant use of loyalty points collected by customer(user) in previous visit. The customer can redeem those loyalty points and also can make payment with the same mobile application. The solution may accomplish that if customer is loyal and has access to loyalty card or mobile phone then he/she can take advantage of services provided by merchant and also increase in repeat purchase of customer for merchants which may increase business relation among the payment organization, loyalty associations and card owner.
Keywords : NFC, Loyalty, smart cards, mobile payment.