Retailers including House of Fraser, Tesco and Primark have teamed up with American Express and location based social network Foursquare to offer customers location-based deals .

The service allows customers to collect savings when they ‘check in’ to foursquare when they are in particular shops – when they log their location on their mobile device, the savings are automatically credited to their American Express card account.

Amercian Express said the deal will drive footfall for retailers, and increase engagement and loyalty among customers.

Cardmembers must register for the service and sync their American Express card account with foursquare. If they see a promotion they’d like at a certain location, they check in and load the promotion. Once they’ve spent money at the retailer, they will receive the credit to their account.

All three retailers are running promotions that allow customers who spend £10 or more to get £10 back. Other participants include food outlets such as Eat, Pizza Express and Strada.

Scott Abrahams, vice president of merchant services at American Express UK, said:  “We know our merchants are keen to embrace the benefits that smartphones can bring them and that our Cardmember base is more socially and digitally connected than ever before. 

“We’re excited to be marrying our digital capabilities with foursquare’s leading edge application to deliver voucher-less offers from so many popular high street brands.”