LOYALTY TECHNOLOGY & SOLUTIONS

Geolocation: From Mapping Movement to Fighting Fraud and Fuelling Personalisation

In the financial services sector, geolocation has emerged as a frontline tool in identifying and preventing fraud. By cross-referencing a customer’s device location with the location of a transaction, banks can instantly flag anomalies — such as a purchase made in Spain while the user’s phone remains in London. (Image: Radar)

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GLO

Geolocation technology, once largely confined to navigation and retail promotions, is now playing a transformative role in fraud prevention, customer engagement, and digital personalisation. As financial institutions and technology firms pursue smarter, real-time strategies, geolocation has become a critical asset in understanding customer behaviour and protecting against fraud — all while creating more meaningful and secure interactions.

Fighting Fraud with Location Intelligence

In the financial services sector, geolocation has emerged as a frontline tool in identifying and preventing fraud. By cross-referencing a customer’s device location with the location of a transaction, banks can instantly flag anomalies — such as a purchase made in Spain while the user’s phone remains in London.

“Geolocation data is powerful when it comes to anti-fraud,” explained Nick Patrick, CEO and co-founder of Radar, in a recent interview with PYMNTS. “Whether it’s detecting account takeovers or powering cashback offers, the applications are wide-ranging.”

Card networks like Visa have integrated mobile location-sharing tools into their fraud detection frameworks. According to Visa, enabling such technology can reduce false declines by up to 30%, enhancing both security and customer experience.

From Security to Loyalty: Real-Time, Location-Aware Engagement

Beyond fraud prevention, location data is also revolutionising how businesses engage customers and build loyalty. By leveraging geolocation, brands can deliver timely, relevant push notifications — alerting users to cashback deals, special offers, or app features tailored to their exact location.

Examples include:

• Banks and fintechs sending targeted cashback offers when a user enters a partner retailer’s premises

• Retailers like Dick’s Sporting Goods activating “store mode” in their app upon entry, providing maps, personalised offers, and scan-to-pay capabilities

• Reward platforms such as Ibotta increasing message engagement rates by 10 times with location-triggered notifications

Even sporting bodies have adopted the tech — the PGA Tour reported a 71% increase in app engagement when using geolocation to deliver timely messages to fans on-site.

Simplifying the Stack: Consolidated Geolocation Platforms on the Rise

As digital ecosystems become more complex, businesses are increasingly adopting all-in-one location platforms to streamline their operations. Instead of juggling standalone mapping, personalisation, and fraud detection tools, companies are now seeking integrated geolocation solutions that fit seamlessly into existing tech stacks.

“We’re seeing a shift from fragmented point solutions to platforms that provide a unified view of the customer,” said Patrick. “It’s about budget efficiency and operational simplicity.”

This movement is particularly appealing to organisations already managing multiple systems — including CRMs, CDPs, and marketing automation platforms — all of which benefit from location-aware context.

Earning Trust: Privacy, Transparency and User Control

As with any technology that handles personal data, trust is paramount. With regulations such as the UK GDPR and ePrivacy Directive, and rising consumer awareness, brands must adopt transparent data practices to maintain credibility and encourage opt-ins.

“Consumers are more discerning than ever,” Patrick said. “To gain location permissions, you must clearly explain what data is collected, how it’s used, and — critically — how it benefits the user.”

Firms that champion clarity and deliver genuine value through location-based services are seeing higher opt-in rates and deeper customer loyalty.

The Future of Payments: Intelligent, Integrated, and In the Moment

Geolocation is now part of a broader shift toward real-time, AI-powered personalisation, where the objective isn’t just to capture a transaction — but to create a connected, ongoing customer experience. Whether it’s detecting suspicious activity, triggering relevant offers, or streamlining in-store interactions, geolocation sits at the intersection of security, service, and engagement.

Thanks to open banking and API-first infrastructures, payment providers, retailers, and loyalty platforms can now share data and context more effectively — enabling geolocation to act as a digital bridge between systems.

As brands look for new ways to stand out in an increasingly noisy digital environment, one principle remains clear: where you connect with customers — and when — is just as important as how.

Source: GLO