Upromise is a company in the United States that provides a loyalty program of the same name, where members accrue credits on eligible purchases that are directed to a college savings plans or to pay down student loans. The company has been owned by Sallie Mae since 2006 and is headquartered in Newton, Massachusetts.
Upromise members accrue account credit on eligible purchases from grocery stores, online retailers, travel, and restaurants. Members can direct their earnings into a high-yield savings account or tax-deferred 529 plan, use it to pay down eligible student loans or request a check as the money is not required to be spent on college-related expenses.
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History
Upromise, Inc. was co-founded in 2000 by Michael Bronner, David Fialkow and Jeff Bussgang after 529 plans were legislated by Congress, which allowed consumers to save money for college in tax-free investment accounts. The Upromise Rewards program was introduced in 2001. In 2002, Upromise created Upromise Investments as a brokerage firm to manage the 529 college savings and investment plans.
Upromise, Inc. was acquired by Sallie Mae, the leading U.S. education finance company with over 10 million borrowing customers, in 2006. A co-branded Upromise and MasterCard credit card was introduced in 2001 and began with Citigroup as the card issuer. Citigroup sold the Upromise card to Bank of America in 2008, and in 2012, Sallie Mae dropped Bank of America and sold the credit card to Barclay's.
In 2012, Upromise settled privacy complaint charges with the FTC regarding Upromise's TurboSaver Toolbar. Upromise officials said the problem was the vendor of their toolbar and was unintentional, with only a small percentage of users affected. The company halted data collection by the toolbar in January 2010, and has since created a new toolbar application called RewardU with compliant FTC measures and safeguards in place, including consent and privacy disclosures for shared information.
As of 2014, the company's rewards program has helped users earn more than a total of $850 million towards college education costs so far by sweeping the rebates accumulated into savings and 529 plans. Through a partnership with 529 plan administrator Ascensus College Savings, Upromise enables its members to deposit program earnings directly into their 529 accounts. As of November 2015, account holders had direct deposited $250 million of these cash back earnings into their Ascensus 529 college savings accounts. Some users have expressed the program's benefits as useful for those who put in the effort and spending, but not necessarily as beneficial for those who did not put in an effort to use the program to its full potential. About.com Family Vacations noted that the program was a "win-win" for parents using Upromise to purchase family vacations. However, some critics of the Upromise program pointed out that as of 2008, the average member had earned only $47 toward future college expenses, and that to accrue this amount, the participant opted into a highly detailed purchase-tracking system, with information sold by Upromise to subscribing marketers.
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Products and services
Upromise Inc. operates a loyalty program called Upromise Rewards. Members can earn rebates at registered grocery stores, retail locations, restaurants, and online shopping sites through the Upromise online shopping database and by registering their credit cards with their rewards membership. Upromise also offers a credit card to earn cash back for college expenses or to help pay down eligible Sallie Mae student loans.
Members are then able to direct all of their rebates into savings accounts or tax-free 529 savings plans, or simply request a check for their earnings, though the program does encourage users to earn and save for college.
Earning rewards
A member can shop directly through the Upromise site and earn up to 5% cash back. The rebates, which vary depending on the purchase and partnership, automatically post to the member's Upromise account. If a member wants to dine at a participating restaurant, an online search tool keeps updated lists of participating restaurants and details exactly how much they will earn.
Members can track their earnings when they shop using the RewardU toolbar that can be download to their web browser to remind them of cash-back opportunities. The toolbar helps ensure members are earning as much as possible with every eligible purchase and helps them track what they earn as they go. Upromise members' family and friends can also register and have their earnings transferred to the member.
Offline, members can also earn cash back rebates at various participating locations. For restaurants, users can earn 5% cash back of the amount spent on meals. As of 2004 the program had over 10,000 participating restaurants and 20,000 participating grocery and drugstores.
References
Source of the article : Wikipedia
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