Tap Network Secures $4M Funding for Rewards Program

Tap Network is introducing a novel system for customer loyalty programs, which they term “rewards as a service.”

Those familiar with the startup landscape may recognize the Tap Network brand, along with its co-founder and Chief Executive Officer, Lin Dai, from Hooch. Hooch initially provided a daily drink subscription service before evolving to concentrate on a more comprehensive rewards solution. Dai shared that he “gained valuable insights from the Hooch venture” but ultimately “concluded that Tap represents a significantly larger market opportunity, with a focus on rewards in a general sense.”

Tap Network is a recently established startup that has secured $4 million in funding from a group of investors including Revelis Capital, Nima Capital, the Forbes family office, Warner Music Group, Access Industries, Bill Tai, Bob Hurst, Edward Devlin, and others.

Dai explained that traditional rewards programs typically cater only to a company’s most valuable customers – the top 10% or 20%. He believes businesses now have the chance to “provide exceptional service to their average customers, who, while perhaps not considered crucial 40 years ago, are now capable of establishing consistent loyalty patterns.”

He further noted that extending rewards program access to a wider customer base offers an additional advantage for many organizations, as “large financial institutions and travel companies are increasingly holding substantial sums in unredeemed points.” While these points may remain unused, they still represent a financial obligation from an accounting standpoint.

Tap Network intends to address this issue by enabling customers to utilize their points across a more extensive range of rewards, often at a reduced point requirement. The service is offered as a customizable solution that integrates with existing rewards programs, allowing each program to select rewards best suited to its customer base.

As an illustration, Uber collaborated with Tap Network to enhance its Uber Rewards program, introducing new rewards powered by Tap Network, such as complimentary access to Apple Music or HBO Max, alongside the option to contribute to organizations like World Central Kitchen. The minimum points needed for reward redemption was also lowered from 500 to 100 points.

Additional companies currently utilizing Tap Network include Warner Music Group (also an investor, as previously mentioned) and Brave, a browser prioritizing user privacy.

Dai suggested that Tap could potentially facilitate the combination of rewards points from various programs in the future: “When a customer wishes to redeem a reward, they may be able to use a portion of their Uber points, a portion of their Warner points, and points from another program,” effectively pooling their benefits.