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Key Concepts

This page explains the core ideas behind how Spraed works. You don't need to read it before getting started, but it will help you make sense of terms and behaviors you'll encounter throughout the platform.

Accounts​

Every participant in a Spraed program has an account. The account holds their current balance, transaction history, and program membership. There are three account types, one per role:

  • Individual account — the consumer's account. Tracks earned benefits, redeemable balance, and pending balance.
  • Business account — the program owner's account. Tracks the total loyalty liability outstanding across all members.
  • Merchant account — a merchant's account within a coalition. Tracks issued benefits, outstanding debits, and reimbursements due.

When a transaction occurs, Spraed creates a ledger entry against each of the impacted accounts simultaneously.

The digital card​

Every Individual has a digital card — a QR code shown in the Spraed app under "Your card." The QR code is dynamic: it is generated fresh each time the page is opened and encodes a time-limited token tied to the member's identity.

To process a transaction, the Business or Merchant scans the member's QR code and enters the purchase amount. The QR code approach means no physical card, no NFC hardware, and no card reader required — just two smartphones.

Program types​

Spraed supports multiple program types, with more in development. See Supported program types for details.

Transactions​

A transaction in Spraed is any event that changes an account balance. When a member makes a purchase:

  1. The merchant scans the member's digital card and enters the amount
  2. The Spraed app sends the transaction to the API gateway
  3. The gateway creates ledger entries against all impacted accounts (member, business, merchant)
  4. A settlement event is triggered and processed within seconds
  5. The member receives a push notification confirming the benefit earned

The entire flow — from scan to notification — typically completes in a few seconds.

Settlement​

Settlement is the process of resolving the financial obligations created by a transaction.

In a Single Brand program, settlement is immediate and internal. There are no payments between parties.

In a Coalition program, settlement involves real money moving between independent entities:

  • The issuing merchant (where the member shopped) is debited for the benefit amount plus commission, which is credited to the Business's currency account
  • The member's benefit moves from pending to available once the debit is confirmed
  • The redeeming merchant (where the member spends) is reimbursed by the Business via bank transfer or offset

The currency account is the Business's settlement float — it receives merchant contributions and pays out redemptions.

Loyalty balance​

Your loyalty balance is the total value of benefits currently outstanding — everything you have promised to members that has not yet been redeemed. Think of it as your loyalty liability. Spraed shows this prominently in your dashboard so you always know your exposure.

In a coalition, each merchant also has their own balance showing what they have issued and what is currently pending settlement.

Member onboarding​

Onboarding a new member requires no manual work. When a program is activated, Spraed generates a printable A5 poster with a QR code unique to that program. The customer scans it, downloads the Spraed app, creates an account (username, password, or passkey), and is immediately enrolled. The entire flow takes under a minute.

A single Spraed account can be enrolled in multiple programs — the app includes a program switcher to move between them.

API integration​

For businesses that need deeper integration — connecting Spraed to an existing POS system, ERP, or e-commerce platform — Spraed provides a REST API via a dedicated API gateway. The API covers identities, programs, accounts, transactions, promotions, and more.

See the API documentation for details.