I would love it, saves me taking out tons of cash and carrying it around with me, plus I could get reward points from my punting
Never likely to catch on, in my opinion. For a start, prossies prefer hard cash. I suspect they also distrust punters just as much!
Secondly, chip and pin costs a lot of money to set up. Fuck me, most prossies I've punted can barely manage to have credit on their phone or pay their rent, never mind pay, yes PAY upfront £1500 or so, to set it up! That would also entail setting up a business account, which would include revealing their true income and what they do. Plus many take benefits whilst doing this and most don't pay tax. It doesn't look promising!
You clearly have a death wish, if you're happy for a prossie to potentially know your financial details, real name and possibly address.
I do think, however, that your idea of a loyalty scheme would is pretty innovative.