The growing popularity of digital and mobile coupons is evident in the case of Savingstar. The digital coupon company has already hit 500 thousand subscribers in only a matter of three months since it started last April.

With this, it can now be said that Savingstar has had a faster initial rise than Foursquare or Groupon. One major contributor of the company’s success could be its strategy of combining coupons, loyalty or reward programs and smartphones.

Currently, over 24,000 drug and grocery stores, as well as 100 major chains have affiliated with Savingstar since it first started. These retail companies are trying out their reward programs with Savingstar’s platform for digital coupons. Users are able to access the Savingstar website via the Android app or the iPhone app and then connect their Savingstar account to their store’s loyalty card or reward program. When consumers pick digital coupons on the website, it is then added to their account and when they buy a particular item at the store that has partnered with Savingstar, they can then use the mobile application to redeem the digital coupon at the checkout counter. The savings that they get are accumulated in their Savingstar account. When the savings reach $5, they can choose to have the money sent directly to a PayPal account, or a checking or savings account. They can also choose to exchange the money for an Amazon gift card or donate it to charity.

According to Savingstar’s CEO David Rochon, Savingstar’s power comes from its application of shopping innovation to drug store and grocery store purchases.