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Crypto is becoming the new currency for loyalty programs

Nowadays, people can use cryptocurrencies to pay for services and goods, trade on various exchanges, lend them and receive interest.

Moreover, since the previous year, customers can earn bonuses in cryptocurrency from various loyalty programs.

A dawn for crypto

According to a survey conducted by “Harris Poll”, 28% of Millennials in the United States alone own or trade cryptocurrencies.

Furthermore, 44% of participants of the most popular “cash back” loyalty programs would accept being rewarded for their points or bonuses.

Meanwhile, according to market and consumer data company “Statista“, more than 1.5 million cryptocurrency payments were completed in a single day alone in July this year.

Payments are also increasing in day-to-day operations – “Microsoft”, “Home Depot”, “Starbucks”, “Whole Foods”, “KFC”, “AT&T”, “Virgin Mobile”, “Expedia” and NBA club “Dallas Mavericks” accept bitcoins for their products and services.

These companies are only a few examples that are growing daily.

As a result, an increasing number of businesses are integrating digital currencies into their customer loyalty programs.

 “Starbucks” cafes, “Best Buy” stores, “Choice” hotels, and the “GolfNow” network provide the ability to convert cryptocurrencies into their membership card balance and pay for their services.

New form of reward points

Other companies create their cryptocurrencies and use them to attract customers.

“Rakuten”, one of the largest e-commerce companies, uses its own blockchain platform and RakutenCoin currency in its loyalty program, which can be accumulated and spent on various purchases.

The mobile location-based loyalty platform “MobileBridge” is doing the same. With its help, brands communicate with the platform users, who best meet their attributes in real-time and in specific places, by accumulating and paying in Momentum cryptocurrency.

The well-known Swiss “LATESSO” coffee beverage manufacturer uses a blockchain loyalty platform together with its own LatessoCoin.

Meanwhile, the “LoyalCoin” platform has invented a more authentic way that allows you to “earn” a cryptocurrency of the same name if you pedal 1000 miles with your bike rental partner.

LoyalCoin currency, valued at £20, can be settled with other members of the loyalty program.

When “old” and “new” money meet

The financial services sector is also keeping pace with crypto trends.

The financial services sector is also keeping pace with crypto trends. From the beginning of this year, “PayPal” users can buy, sell and store the most popular cryptocurrencies in their “Cash” and “Cash Plus” accounts. Cryptocurrency users have long been surprised by the use of debit cards, which allow them to accumulate points and issue them in various cryptocurrencies.

Coinbase” and “Binance” cryptocurrency trading platforms offer their customers “Visa Debit” cards, which can be used to transfer any cryptocurrency to a virtual account and pay with it at regular points of sale or cash out at an ATM at the current USD, EUR or GBP exchange rate.

All settlements are subject to a “cash back” scheme, which allows you to accumulate points in the currency of your choice.

The latest news this year is the credit card “Visa® Signature” from the “BlockFi” loan company, which allows you to recover 1.5% -3.5% of all purchases in bitcoins.

In addition, bitcoins can be lent on the company’s internal P2P platform, converted to other currencies, or cashed at ATMs. Although, the credit card is currently only available to U.S. citizens.

Final Thoughts

The more consumers and retailers choose cryptocurrency for mutual payments, the faster it will establish itself and become an indispensable attribute of loyalty programs.

The most important question would not be whether, but when it will happen.

Feel free to contact us, if you need help creating a loyalty program!

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