From Inception to Excellence: Read about ZAP’s 11-Year-Long Journey

Amidst an ever-changing shopping landscape in the Philippines, loyalty programs have become lifesavers for businesses seeking success. Among them, ZAP stands out as a pioneer, offering a unique way to reward customers and keep them coming back for more. And now, as it marks 11 years in the country, ZAP has more reasons to celebrate!

ZAP’s Beginnings

The idea for ZAP began in 2012, when four friends – Dustin Cheng, Terence Lok, Angelique Uy, and Justin Lim – were pondering a common frustration. They sensed that businesses struggled to truly understand their customers, leaving a significant gap between merchants and loyal supporters.

Wanting to bridge that gap, they imagined a platform that gathered customer data and transformed them into actionable insights. Their main goal was to equip merchants with the tools to draw in customers and build lasting relationships that would encourage them to keep coming back.

Seeing the flood of loyalty cards overwhelming Filipino shoppers, the ZAP team knew they had to come up with a more straightforward approach. So, they introduced a mobile-number-based system. No more forms or app downloads – just tap in your mobile number to earn and redeem points, hassle-free.

With the support of Kickstart Ventures, backed by Globe Telecom, ZAP took its first steps with 50 partners in March 2013. Fast forward to today, ZAP proudly works with over 1,000 merchants.

Challenges and Setbacks

The journey to ZAP’s success wasn’t always smooth sailing. As the company gained momentum, its founders had to juggle multiple responsibilities—managing employees, securing merchants, training their staff, and sourcing hardware—all on top of their day jobs. 

They also encountered bumps along the way, like the need to shift from their initial open-loop loyalty program. An open-loop model allowed customers to earn points at one establishment and redeem them at other partner stores. Although customers enjoyed being able to shop and collect points from different merchants, brands were affected by consumers buying once and then going to another store to redeem.

To address this, ZAP shifted to a closed-loop loyalty program. Closed-loop meant that reward points could only be redeemed with the brands these were earned from. This move was a game-changer for ZAP, giving merchants more control over their loyalty program and increasing customer patronage. 

Innovations and Milestones

As ZAP grew a steady client base of small and big companies such as Total, Vikings, Chatime, and Kiehl’s, it also began to enjoy international success. In 2016, ZAP began its expansion to Malaysia via a Joint Venture with Asia’s largest low-cost airline, AirAsia. 

ZAP has also had to adapt amidst challenging times, especially during the pandemic. As ZAP’s clients faced shop closures because of in-store buying restrictions, the founders knew they had to develop a new business to stay relevant and, more importantly, help keep their partner businesses running. Thus, the ZAP E-Store was born. 

With the ZAP E-Store, F&B merchants could build their own online ordering and delivery system. By bringing their businesses online, ZAP’s partners could adapt to the new normal and open up to an entirely new network of customers.

In 2021, ZAP reached another milestone: it secured Series A funding from True Digital Group (TDG), the digital arm of True Corporation Plc, Thailand’s leading telecommunications and digital services provider.

Looking Ahead

ZAP isn’t one to rest on its laurels. In 2024, it launched a new product called ZAP Reservations, a cutting-edge platform set to revolutionize dining experiences.And ZAP isn’t stopping there. With eyes set on becoming the ultimate one-stop shop, ZAP aims to capture every customer interaction: from the moment a customer steps into a business’ doors—both in the physical and digital sense—to the point that they return. Its main goal is to add value that the merchant and customers will appreciate through its tools and services.