American Express Reinvents Rewards Program With Hyperledger Blockchain
American Express has introduced a blockchain powered rewards program in collaboration with digital retailer Boxed. The financial services behemoth declared that it was harnessing Hyperledger ‘s blockchain technology to permit merchants to build tailor-made Membership Rewards Programs for American Express cardholders. The pilot project with Boxed would allow members to gain five times the usual number of reward points on specific products.
The Hyperledger Project is a collaborative effort to define and develop industry-standard blockchain technology that can be used by developers to build applications for multiple industries. It is an open-source project hosted by the Linux Foundation, which is home to many other open-source initiatives including the widely used Linux operating system.
American Express will devote a private channel on its blockchain allowing each merchant to process the transfer of information. Merchants would be required to create smart contracts. These smart contracts would be instrumental in executing rewards program. A cardmember, when he/she purchases an ongoing offer, the smart contracts would convey the information on the transaction to American Express using the private blockchain.
It would empower the merchant to exercise control about the offers currently offered. They can customize the rewards programs accordingly. American Express reserves its exclusive right to take stock of products being offered and exercise discretion if need be. American Express is confident of on boarding of merchants on its platform within weeks as compared to a month’s time earlier. It would ensure streamlining of the process of on boarding of merchant establishment on American Express platform thanks to reduced work on merchant’s part.
Image via American Express Facebook Page
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