As we have discussed numerous times, blockchain use cases transcend peer-to-peer money transfers, with companies in the space developing decentralized solutions for health records, land records, agriculture, loyalty programs and so on.
Today we want to talk about the last mentioned use case, and present you Orioncoin, which used the recent BlockShow Asia conference in Singapore to spill the beans on its upcoming loyalty program platform.
Turning points into cryptocurrency
Orioncoin’s platform will enable companies to offer loyalty programs that involve transferable points. In other words, once earned – users participating in an Orioncoin-enabled loyalty program would be able to use the same points to redeem goods and services at other companies that also use Orioncoin’s platform, or simply cash them out.
Major financial institutions such as Chase, Citi and American Express are already doing something similar, offering credit cards that allow members to earn transferable points and use them with their airline and hotel partners, or buy gift cards, electronics and other stuff. Their systems, while great — especially those offered by Chase and Amex — are limited in scope and centralized.
Orioncoin wants to enable similar functionality for a wider number of merchants and turn loyalty points into a cryptocurrency. As a platform provider, it would provide benefits for both merchants who will be able to offer great loyalty programs; and customers, who would get an additional flexibility with the option to use the same points (ORC tokens) with multiple merchants or cash them out.
“We make loyalty points on our own Blockchain. We basically just simply provide a Blockchain technology to the loyalty point system, which can increase value,” Orioncoin CEO Woanjen Tang told Cointelegraph. “We move the development forward through loyalty points, which they can have for free and use the coin access to the cryptocurrency market.”
Orioncoin’s token sale is under way and will last through March 18, 2018. The company is already marketing its platform, and working on new Blockchain IoT products as well as two additional online platforms.
Blockchain-based loyalty programs look promising
But don’t take my word for it; among the companies looking at this space are major consulting firms, such as Accenture, Capgemini, Deloitte, PwC and KPMG.
Deloitte has even released a report exploring the use of blockchain in loyalty rewards programs. Said report has found that most current (centralized) loyalty programs offered by US companies are underutilized and have high management costs. On the other hand, many users of these programs are likely to leave them due to a perceived lack of convenience.
Blockchain, Deloitte argues, could help and offer a mechanism by which a loyalty program would function similarly to digital currency. For instance, customers could receive reward points that can be redeemed for, say, an upgrade to a plane ticket.
Another company that is looking to add blockchain to its loyalty program is Amex, which has even filed for such patent. And then there’s Burger King that has launched its very own WhopperCoin in Russia.
So yes, there’s money to be made in this market…