Dynamically financed customer engagement campaign

A computer-implemented method comprising:

• receiving, by a payment processing system, a request from a merchant device associated with a merchant to initiate a financed customer engagement campaign, wherein costs to the merchant of the financed customer engagement campaign are based on customer participation;
• calculating, by the payment processing system, participation terms and financing terms, the financing terms including repayment terms, the participation terms including a transaction redemption amount, wherein the transaction redemption amount offsets a discount given by the merchant for a transaction during the financed customer engagement campaign such that the costs to the merchant of the financed customer engagement campaign are delayed for the merchant;
• processing, by the payment processing system, a plurality of transactions between the merchant and customers based on transaction information received via the merchant device during the financed customer engagement campaign;
• for each transaction of the plurality of transactions processed by the payment processing system for the merchant, tracking an amount of the discount given by the merchant to a respective customer for the transaction and a payment amount received from the respective customer;
• and
• depositing, by the payment processing system, a net settlement amount in an account associated with the merchant, the net settlement amount based on the payment amount received from the respective customer for each transaction and the transaction redemption amount determined for each transaction based on the discount given by the merchant for each transaction.

A payment processing system comprising:

• a processor;
• and
• a memory storing instructions that, when executed by the computer processor, cause the computer processor to perform operations including:
• receiving a request from a merchant device associated with a merchant to initiate a financed customer engagement campaign, wherein costs to the merchant of the financed customer engagement campaign are based on customer participation;
• calculating participation terms and financing terms, the financing terms including repayment terms, the participation terms including a transaction redemption amount, wherein the transaction redemption amount offsets a discount given by the merchant for a transaction during the financed customer engagement campaign such that the costs to the merchant of the financed customer engagement campaign are delayed for the merchant;
• processing a plurality of transactions between the merchant and customers based on transaction information received via the merchant device during the financed customer engagement campaign;
• for each transaction of the plurality of transactions processed by the payment processing system for the merchant, tracking an amount of the discount given by the merchant to a respective customer for the transaction and a payment amount received from the respective customer;
• and
• depositing a net settlement amount in an account associated with the merchant, the net settlement amount based on the payment amount received from the respective customer for each transaction and the transaction redemption amount determined for each transaction based on the discount given by the merchant for each transaction.