IBM and China UnionPay have developed a platform that enables customers to trade points earned through purchases and other incentivized behaviour with one another. It is a proof-of-concept that can be applied to the exchange of frequent flyer miles, mobile phone bills or gas cards.
The prototype was created on a private network of the beta-version Hyperledger Fabric network, unveiling the banks role to ensure that loyalty points are only exchanged between accepted partners. Moreover, it is designed to integrate online and offline channels via blockchain, enabling China UnionPay cardholders to go to supermarkets and malls equipped with special point-of-service (POS) devices and exchange bonus points for goods.
The loyalty points network is being positioned as a way to attract new customers and stimulate customer loyalty through increasing the types of rewards available, by opening up incentives between banks.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now