American Express Embraces Hyperledger Blockchain For its Rewards Program
American Express has taken the decision to partner with online retailer Boxed in order to integrate distributed ledger technology (DLT) into its rewards program. The information has been released by American Express on May the 23rd in a blog post.
By using hyperledger technology, its loyalty rewards program will be enhanced, providing better services and products to customers and merchants. American Express card holders will have the possibility to earn loyalty points five times faster.
In addition to it, Merchants will be able to control the products that they want to offer with discounts, and allow them to assign specific bonuses to some items they sell. At the moment, the multinational financial company explained that it will have the right to control the brands and products that will be able to be promoted.
This is an exciting tool for merchants that will have the chance to decide how to offer rewards to their clients. Moreover, they will have the possibility to develop and customize their own campaigns and promotions.
In order to enjoy the promotion, users will have to download an application that will be link to each merchant, something that will have an important impact in the price of some products and services offered.
As soon as an offer is available, a smart contract will be send an anonymized transactions to Amex on its private blockchain where they will identify the card member and issue the deserved reward points.
In the past, American Express filed a patent application intended to make a blockchain based rewards program system. In this way, it joins the important group of financial institutions working with DLT.