How cryptocurrency helps big brand loyalty programs

How cryptocurrency helps big brand loyalty programs

By Kluma | InterestingCrypto | 17 Jun 2020



What kind of crypto start-up does Nike work with, how to get a cashback in bitcoins for reservations on Airbnb, as well as Rakuten, Reddit and other world-famous companies that already penetrate the blockchain industry

Digital money is becoming more common. Now they got to the Nike sneakers. Is it possible to get cryptocurrency by buying your favorite shoes, and what kind of competitors does Aliexpress have? Talk about how global corporations are adapting Bitcoin and Co., involving more and more people in this market.

Nike and Plutus

On June 2, 2020, the global sports giant stirred the cryptocommunity. The company has teamed up with London-based startup Plutus, which specializes in financial technology. Plutus offers its customers a reward for every purchase in the Nike online store. Cash remuneration is paid in the amount of up to 9% of the purchase amount, and in cryptocurrency - up to 3%. Main condition: a purchase can only be paid with a Visa Plutus card. Now the service is available only in Europe and the UK - funds are returned in euros and pounds.

The main goal of a startup is to make cryptocurrency as widespread and familiar as the dollar. The startup is moving towards this goal by combining tokens and classic currencies in its application.

By the way, this is not Nike's first step into the crypto industry. In December 2019, the company patented CryptoKicks blockchain sneakers. It is assumed that when buying a pair of sneakers, a digital token will be created, and a product and buyer ID will be tied to it. So fake shoes will be simply impossible: the authenticity of the sneakers can be verified by scanning the code.

Prior to this, Nike launched a loyalty program in partnership with the Lolli platform. Sneakers buyers can return up to 3% of their spending on shoes in the form of bitcoins.

For Plutus, this is not the first collaboration either. Not so long ago, the company teamed up with giants such as Skyscanner and Airbnb. Due to the COVID-19 pandemic, partnership development has been suspended.

Airbnb Experience

Airbnb works with a variety of loyalty programs to attract as many digital money users as possible. The list of service partners includes Lolli, Fold and Crypto.com.

The Fold application for payments in bitcoins has supported Airbnb since 2019, users can get 3% of the cashback in bitcoins for every reservation on Airbnb paid for with cryptocurrency.

Crypto.com - an electronic payment system that allows you to pay for purchases with cryptocurrency, returns up to 8% of expenses in the form of tokens to users. The millionth platform also collaborates with the Expedia reservation service. The payment system stands out among others in that it is present simultaneously in Europe, Asia and America.

Travala

More and more representatives of the tourism industry are using cryptocurrencies to attract new users. The Travala.com hotel reservation service and TravelByBit airline ticket search site recently announced a merger. Both platforms accept tokens for payment and plan to expand their use.

According to data from May 20, 2020, the companies will unite to become a platform that will provide access to more than 2 million hotels and 600 airlines. Binance cryptocurrency exchange supported this decision. Binance CEO Changpeng Zhao praised the companies, believing that they would create a modern reservation service for the cryptocommunity.

It is noteworthy that Travala already had its own AVA token, which gives access to bonuses and discounts. Soon they will be available to TravelByBit users. Now for every booking through Travala, a traveler receives a 2% bonus in tokens.

Tokens instead of miles: airlines and blockchain

The aviation industry is also introducing blockchain into loyalty programs. Norwegian Airways launched its own NBX cryptocurrency exchange. In July 2019, the managing director of the exchange, Stig Chios-Mathisen, said in an interview with a local news source:

“First, a trading platform will be launched. Then NBX will develop a payment solution for the airline so that customers can pay with virtual currency. ”

As of February 2020, the platform is already ready to accept payments in cryptocurrency. In the future, the company plans to launch a loyalty program related to blockchain technologies.

In July 2018, Singapore Airlines became the first carrier in the world to launch a blockchain-based digital loyalty wallet. It is called KrisPay.

By downloading the KrisPay app, members can convert their KrisFlyer miles to KrisPay miles. To make purchases, users scan the KrisPay QR code from the seller and enter the amount they want to pay with their miles. Now 18 sellers from different categories are working with the platform.

“Thanks to the blockchain-based digital wallet, participating sellers can easily connect to the program, and customers can make purchases using their tokenized miles,” said Jan Reinmüller, head of Digital Village in Singapore.

Lolli

The Lolli cryptostartup, in which Ashton Kutcher, Guy Ozeri and Michelle Fan have invested, helps to get bitcoins even for buying food. In the summer of 2019, the company entered into a partnership with Safeway, a large grocery chain from America, and now Americans can return 3.5% of their spending on food in the form of cryptocurrencies.

In an interview with Yahoo! Lolli CFO and co-founder Alex Adelman said that “joining one of the most recognized food retailers in the US will give people the opportunity to own bitcoins - probably for the first time.”

Founded in March 2018, Lolli allows users to earn Satoshi (0.00000001 BTC) for online purchases. Lolli increases the popularity of tokens among ordinary people by launching loyalty programs in partnership with global giants. The company already encourages people to book hotels on Hotels.com and Booking. So far, only US citizens can register with the Lolli loyalty program.

Zelwin vs Alibaba

The global giant Alibaba has become a partner of the aforementioned Lolli, but this is not the only marketplace that has learned to use cryptocurrency. So, Zelwin offers users to earn money on their spending. For each purchase, the user receives ZLW tokens, which can then be exchanged for real money or other tokens, or spent.

The platform also allows users to use not only regular money, but also cryptocurrency - BTC and ETH in settlements with sellers. For convenience, the site has its own exchanger for conversion.

Rakuten

"Japanese Amazon" - Rakuten, is going to accelerate the entry of cryptocurrency into everyday life. Rakuten began to provide its users with the opportunity to exchange loyalty points of the Rakuten Group for popular cryptocurrencies, for example, bitcoin. This can be done by company customers in Japan. To do this, they must have an active account in Rakuten Wallet.

Reddit

The Reddit platform also launches its token loyalty program. During the summer, users of two Reddit subgroups, including r / CryptoCurrency, will be able to earn tokens for posting comments. You can use the currency to buy exclusive icons, use animated emoticons, and to respond to Reddit comments with pictures.

The efforts of Reddit differ from in-game money or rewards for video games in that the site creates real cryptocurrency working on the Ethereum network.

Major players in all sectors are reviewing their existing loyalty programs to take advantage of cryptocurrencies. The most effective and useful cryptocurrencies can simply be loyalty points. And the most numerous users of digital money have a chance to be those who did not even think about it before.

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