The Palo Alto, California-based startup Shopkick Inc. has recently unveiled a new smartphone application which uses an amalgam of geo-location technology for delivering custom-made discount offers to the mobile handsets of prospective shoppers.

For rolling out the technology, Shopkick – which is funded by Kleiner Perkins and LinkedIn founder Reid Hoffman - has already worked out arrangements with some of the bigwig retailers, including Best Buy and Macy’s. In addition, Shopkick last month managed to raise a $15 million funding round Greylock partners.

According to the information forwarded by Shopkick, the new app does not require shoppers to check-in manually - a feature that is prevalent in apps like Foursquare or Loopt. Rather, it can automatically check in customers as soon as they walk through the door of a store.

Furthermore, the app also dispenses electronic reward points, called “kickbucks,” for each in-store visit of a shopper. These “kickbacks” either be redeemed as discounts on the purchases from the store or can be amassed and converted into Facebook credits, Napster songs or discounts from Shopkick’s other partner stores.

As per Shopkick, the app will ultimately be able to send in-store offers, pointing to certain products, to the mobile handsets of customers.

Talking about the new Shopkick app, analyst Susan Etlinger of the San Mateo-based Altimeter Group, said: “This is bringing together the online and offline experience in a way that makes sense for consumers.”