Nietech tools used for national affinity card program

<p>SANTA ROSA – Nietech has a new CEO and its first two major national customers.</p><p>Three years ago the marketing and payment processing company launched the CommunitySmart affinity program in Santa Rosa to prove its technology. Now Nietech is being approached by pioneers of a new consumer trend – "social commerce" – to deploy its technology for programs that thousands of businesses and millions of consumers are expected to use.</p><p>The Interra Project of Seattle rolled out a pilot program in Boston just before Thanksgiving. Affinity One – also known as Affin1ty – of Vancouver, Canada, plans a spring launch targeting both the Canadian and U.S. markets.</p><p>"With a rapidly expanding customer base we expect to be profitable in mid-2007," said Nietech's new President and CEO Don Dunbar.</p><p>The former Pisenti & Brinker partner, founder of Sonoma Metal, member of the North Bay Angels and Nietech CFO assumed the leadership position in October, just in time to oversee the company's national debut.</p><p>After the Boston pilot program, Interra plans to offer the program in Seattle, Vancouver, Portland, the Bay Area and eventually nationwide.</p><h3>How it works</h3> <p>Nietech's patented loyalty card can be swiped at the point of sale with no paperwork or special equipment needed by the merchant, who provides a rebate to the consumer. Merchants participate in the program to increase their exposure.</p><p>The Nietech service tracks transactions and makes reports available to card providers, merchants, consumers and nonprofits over the Internet.</p><p>A consumer can also enable debit and credit cards with the Nietech service through the company's partnership with MasterCard. Regional banks – such as Summit State Bank in Santa Rosa – can enter the equation by providing their own debit or credit cards. </p><p>Interra was launched by a group including Dee Hock, founder of Visa International, and Greg Steltenpohl, founder of the Odwalla juice company. Its founders intend to harness consumer power – 70 percent of the Gross National Product – for social change.</p><p>"Our goal is to connect social networks with financial networks. We call it restorative economics, or Renaissance 2.0," Interra co-founder and executive director Jon Ramer said. </p><p>For its own pilot program in Boston, Interra is partnering with Boston Main Streets, a public-private initiative to revitalize Boston's 17 commercial districts. Three thousand businesses are expected to adopt the affinity program.</p><p>As the provider of the Boston Community Change card, Boston Main Street will receive a share of the rebate. The largest share – 70 percent – goes back to the consumer with the remainder going directly to a local nonprofit or school chosen by the consumer. A portion covers administrative costs. </p><p>There are 25,000 Main Street programs across the U.S., formed under the aegis of the National Trust. All are potential customers for Interra and users of the Nietech service.</p><p>Nietech has also been working with Affinity for several years to launch the Affinity card, expected to be adopted by most of Canada's merchants and two million consumers, according to Affinity co-founder John Rochard.</p><p>In the two weeks since Nietech announced the Interra pilot in Boston, it has been approached by several potential new customers, according to Mr. Dunbar.</p><p>"One is a national flash card discounter, similar to Sonoma Express. Another is a competitor of ours who finds it needs our technology," he said.</p><p>Nietech's revenues come from transaction fees, maintaining card providers' custom Web sites and technical support for its own customers. The company will be adding marketing and technical support people to its 14-employee staff as the national rollout proceeds.</p><p>For more information, visit www.nietech.com.</p>