Loyyal – Smart Contract Blockchain Internet Loyalty Rewards?
Loyyal is a blockchain and smart contract-based platform that promises to be creating the internet of loyalty. Find out how it works today in our review.
What Is Loyyal?
Loyyal, found online at Loyyal.com, is a universal loyalty and rewards platform built on blockchain and smart contract technology. Here’s how the developers explain the technology at their official website:
“It introduces interoperability to the currently fragmented industry, multi-branded coalitions, superior program liability management and dynamic issuance/redemption options customized for each unique relationship.”
That’s a bit of a complicated definition. In more straightforward terms, Loyyal is a blockchain-based platform that aims to unify the rewards industry. Today, each business seems to have its own unique rewards program. Certain organizations have tried to unify rewards programs, but today, the industry continues to be fragmented.
Loyyal aims to create a loyalty and rewards platform that can operate across industries. It’s all powered by blockchain and smart contract technology. Let’s take a closer look at how Loyyal works.
How Does Loyyal Work?
Loyyal claims to remove existing barriers from loyalty relationships to enable a more sophisticated custom incentification process. In other words, each business can setup their own loyalty program customized to their own unique needs while still using a loyalty program framework that already exists.
Instead of having a rewards system that’s individually branded, rewards can now be multi-branded. There can be an airline/bank co-branded rewards program, for example, or an airline/retailer/consumer rewards program.
Loyalty incentification can now flow up the relationship network from customer to merchant as easily as it moves down, sideways, or other directions.
So far, Loyyal has already partnered with PWC, Machine Colony, Deloitte, and other major names.
Meanwhile, for blockchain technology, Loyyal is using IBM’s Hyperledger project (or at least, they have plans to migrate to the Hyperledger Fabric in the future). IBM’s Hyperledger may be one of the most promising enterprise-grade blockchain technology available today.
What Problems Does Loyyal Seek To Solve?
Loyyal aims to use blockchain and smart contract technology to drastically reduce the costs of setting up and operating a loyalty program.
In an interview with IBM, the company explained that the loyalty program industry has stayed relatively stagnant over the years. The payments industry has experienced numerous innovations, although the loyalty industry remains largely the same as it’s been for years.
That’s a problem. in that IBM interview, Loyyal reviewed that some large reward program operators have liabilities in the “billions of dollars” in terms of their loyalty points. In other words, if there’s a slight downturn in the economy and customers start to collect on loyalty points, then it could sink even a large company.
Basically, Loyyal wants to make it cheaper for companies to run a profitable rewards program. It reduces setup costs, reduces overhead expenses, and reduces liability for companies – all while unifying the rewards program industry behind an interoperable platform.
Some of the key features of Loyyal include:
- Multi-branded coalitions
- Dynamic issuance and redemption
- Superior liability management
Loyyal is headquartered in San Francisco. The company was founded in 2014 (the Crunchbase page still lists the company’s headquarters as being in New York City).
Loyyal is led by founders Sean Dennis, Gregory Simon, and Shannon Code. The company has raised a total of $1.5 million in 2 rounds of funding from four investors.
Loyyal is a loyalty program platform built on blockchain technology. Specifically, the company uses IBM’s Hyperledger blockchain to create a unified platform that can be used across the rewards and points program industry. The platform can be used to create multi-branded loyalty programs.
Overall, Loyyal wants to fix today’s fragmented loyalty program industry. It brings interoperability to the currently fragmented industry, making it easier for companies to setup and run a profitable loyalty program.
To learn more about Loyyal, visit the company online today at Loyyal.com.