One of the competitors to Priority Moments, the location-based service launched by O2 last week, has criticised the scheme saying that it was disappointing and basically amounted to a "marketing gimmick".
Mark Pearson, the chairman of Myvouchercodes which publishes one of the more popular iPhone discount apps, said that while O2 should be commended for launching the voucher code marketing tool, it still lacks the breadth of offers in terms of actual vouchers.
Pearson was referring to the "far smaller number of shops and retailers than others in this area" including his own venture. He also points out that the scheme is only open to O2 customers (although that is basically free if you have a free O2 SIM) and requires them to hand over their phone number.
Orange, Vodafone and T-Mobile also run their own membership-only reward scheme but O2 - which will invest £6 million in marketing alone - is the first one to have tied it to the location of the customer.
It is quite understandable that Myvouchercodes is miffed by O2's offer. After all, O2's Priority Moments App is currently the 10th most popular in Apple's App Store and has been downloaded hundreds of times on Android Market. Priority Moments is ahead of Groupon (16th), Living Social (135th), Vouchercloud (138th) and .... My VoucherCodes at 171st place.