Can Crypto Platforms Help Loyalty Schemes in Shops Make a Comeback?

Can Crypto Platforms Help Loyalty Schemes in Shops Make a Comeback?

Would you want to receive loyalty rewards from retailers in crypto? New platforms are beginning to make this a reality #Sponsored

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Retailers have been offering loyalty schemes for decades — but ensuring they are attractive enough to generate repeat customers is easier said than done.

Bond’s Loyalty Report, which surveyed 55,000 consumers in 2019, exposed these challenges in a stark way. Although 73% of those polled said they were more likely to recommend a brand with a good loyalty program, personalization is proving crucial for keeping these shoppers engaged — and just 22% are very satisfied that the rewards they are offered are matched to their individual interests.

Overall, retail initiatives are failing to keep up with customer demand. Just 44% are very satisfied with the programs they use. There are recurring issues that even the biggest companies are failing to address. Sometimes, their schemes are simply too complicated for users to get their heads around, leaving them unsure about what the points they have accrued are actually worth. In other cases, shoppers abandon programs because the returns are disappointing. With hundreds and even thousands of brands offering their own cards and accounts, the process of registering for each one individually and remembering to use them all can be overwhelming. And, on top of all this, too many retailers are failing to reach their target market on smartphones — either through instant messaging, social media or custom-built apps.

This led professional services firm KPMG to release a report calling for loyalty schemes to be given a wide-reaching rethink. Almost two-fifths of consumers polled encountered a problem with a loyalty program they used over a six-month period. But here’s the thing: Businesses can hit a lucrative sweet spot if they get their proposition right. KPMG’s research also revealed that 2 in 3 shoppers end up making special trips to earn a reward on a compelling loyalty program — and better still, 3 in 5 shoppers would actually be prepared to pay a little more for goods and services if they had the chance to accrue points, discounts or free products.

Transforming the loyalty market

What’s the solution for giving consumers what they want and ensuring that loyalty programs are viable for businesses? Well, with crypto and blockchain already upending countless other industries, it seems inevitable that this one would be ripe for disruption too.

Digital tokens are beginning to gain momentum, attracting younger audiences who may not be interested or engaged with credit-card loyalty programs or frequent-flyer initiatives. Plus, given how many schemes in the fiat world offer rewards that end up expiring all of a sudden, cryptocurrencies have the benefit of being more permanent. Major players such as Rakuten are exploring this potential, developing a coin that loyal users could convert into cold, hard cash if they wanted to. Other brands are building platforms where customers are rewarded for frequent purchases with points that can be exchanged for Bitcoin.

Businesses are starting to get fed up with investing so much in offering loyalty schemes that end up inactive. Retailers and merchants are paying tens of billions of dollars a year to companies that provide the infrastructure for such initiatives — and research suggests that blockchain could slash these costs dramatically.

For many crypto-based loyalty scheme providers, it’s also about placing the power back in the hands of consumers. Attitudes are beginning to change. Back in the day, it used to be the case that points accrued from a coffee shop would have to be spent at that same chain. But now, multiple brands are coming together under one roof — enabling them to attract a wider audience and welcome shoppers through their doors who may not have made a purchase before.

“A token of discovery”

One company that’s making a foray into the crypto-focused loyalty market is MozoX, which bills itself as a “token of discovery.”

Although its concept is firmly rooted in the future, the company has taken a novel approach by blending the realms of e-commerce and brick-and-mortar retail. It is aiming to motivate shoppers to return to offline stores — driving footfall in malls. The platform’s vision is to entice the public by enabling them to receive MozoX tokens through airdrops established by participating retail outlets, malls and venues simply by visiting their offline locations or by making a purchase. Over time, these tokens can be accrued and redeemed against products and services at any of these venues — “giving shoppers choice, flexibility and convenience,” according to the company. 

MozoX says that its cryptocurrency will be easy to transfer and trade on major exchanges, storable in major wallets and purchasable using fiat currencies, including U.S., Hong Kong and Singapore dollars. The company estimates that the worldwide loyalty market is worth a cool $300 billion, with 91 million stores using loyalty schemes to some extent. Executives say they have already signed memorandums of understanding to roll out its technology in 90,000 stores over the next three years — potentially reaching 13 million shoppers — and that its app value proposition to merchants compared favorably to the likes of Facebook and Uber Eats because MozoX guarantees foot traffic.

Round one of an initial exchange offering is set to take place on the LAToken platform from Nov. 25 to Dec. 25, and MozoX tokens can be purchased using Bitcoin, Ether or Tether.

Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice.


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Would you want to receive loyalty rewards from retailers in crypto? New platforms are beginning to make this a reality #Sponsored

5,200 Tobacco Shops in France Now Selling Bitcoin

5,200 Tobacco Shops in France Now Selling Bitcoin

Crypto wallet Keplerk relaunches its service to sell Bitcoin in over 5,200 tobacco shops in France starting from today

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French crypto startup Keplerk has relaunched its service to accept Bitcoin (BTC) payments in over 5,200 tobacco shops in France starting from Oct. 10.

Service first launched in January

After suspending the service in less than two months after launch in January, Keplerk says that its customers will be able to buy Bitcoin from tobacconists in coupons of 50, 100 or 250 euros, France’s top news channel BFM TV reports Oct. 10.

According to the report, Bitcoin payments in all 5,200 locations will be feasible through Keplerk’s partner Bimedia, which will provide payment terminals.

As previously reported, Keplerk’s initial launch in January 2019 of the service reportedly involved just six tobacco shops, while other publications reported there were as many as 24 shops participating in the program. At the time, Keplerk co-founder Adil Zakhar stated that the firm was planning to expand the project to 5,200 tobacco shops by February despite the reports that France’s central bank did not endorse the initiative.

Bitcoin adoption surges in France

Meanwhile, France is apparently seeing a surge in cryptocurrency adoption. In late September, Cointelegraph reported that over 25,000 points-of-sale of 30 French retailers including sportswear giant Decathlon and cosmetics store Sephora will start accepting BTC payments by early 2020. As reported earlier in September, the French unit of Domino’s Pizza launched an ordering competition with a prize of $110,000 in Bitcoin or cash.

On Sept. 12, French Economy Minister Bruno Le Maire claimed that French authorities do not plan to tax crypto-to-crypto trades, but rather will consider taxation when crypto is sold for fiat money.


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Crypto wallet Keplerk relaunches its service to sell Bitcoin in over 5,200 tobacco shops in France starting from today

Austrian Telecom A1 Accepting Crypto in Select Shops Using Salamantex

Austrian Telecom A1 Accepting Crypto in Select Shops Using Salamantex

Major Austrian telecom operator A1 now accepts 6 cryptos as payment in 7 shops in Austria

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Major Austrian telecom operator A1 has started accepting cryptocurrencies as payment in seven selected shops in Austria.

Six cryptos accepted

Starting from Aug. 19, A1 customers can pay for network services in selected A1 branches using six major cryptos: Bitcoin (BTC), Ether (ETH), XRP, Litecoin (LTC), Stellar (XLM) and Dash (DASH), according to an official announcement published on Aug. 16.

A1 Payment service, a digital payment system developed in collaboration with Austrian digital currency specialist Salamantex, German cashless payment provider Concardis and French smart payment solutions supplier Ingenico, was first unveiled in mid-June.

Alipay and WeChatPay on the way

In addition to existing cashless payment methods, A1 Payment will also enable A1 customers to pay for services using Chinese payment operators Alipay and WeChatPay later in August, the press release notes.

Markus Schreiber, Head of A1 Business Marketing, said that paying with digital currencies is becoming more and more prevalent globally, while cash is becoming an obsolete model, which is affecting all industries. He added that the new crypto pilot will allow A1 to work out the demand and acceptance of digital currencies.

Conversion risks

During the pilot, A1 customers will receive a fixed conversion price of the selected currency at the moment of purchasing a service, while the risk of price fluctuation during the transaction validation will be mitigated by providers. Payments with crypto are now available in seven A1 locations: Kärntnerstraße, Wien Mitte The Mall, Krems Bühl Center, Graz Herrengasse, Linz Landstraße, Salzburg Europark and Innsbruck Kaufhaus Tyrol.

Recently, American telecom giant Verizon was reported to be seeking blockchain talent, including five blockchain developers in an apparent attempt to set up a distributed network.


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Major Austrian telecom operator A1 now accepts 6 cryptos as payment in 7 shops in Austria

French Tobacco Shops Start Selling Bitcoin Despite Regulatory Uncertainty

French Tobacco Shops Start Selling Bitcoin Despite Regulatory Uncertainty

Despite the regulatory uncertainty, several tobacco shops in Paris start selling Bitcoin following a November partnership with local crypto startup

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Several tobacco shops in Paris, France, have started selling Bitcoin (BTC) for fiat despite regulatory uncertainty, Reuters reports Tuesday, Jan. 8.

Reuters has learned that the world’s largest cryptocurrency can now be purchased at six tobacco shops throughout Paris. However, in a contradicting report French magazine Capital has claimed that there are as many as 24 shops currently participating in the experiment backed by Keplerk — a French cryptocurrency wallet provider.

According to Capital, customers can purchase Bitcoin for the sums of 50, 100 or 250 euros. The tobacco shop then provides a ticket with an alphanumeric code and a QR code, which can then be used to obtain the purchased bitcoins via Keplerk’s website. The magazine adds that Keplerk collects a 7 percent fee on each payment, 1.25 of which then goes to the tobacco shop.

Adil Zakhar, a co-founder of Keplerk — the French crypto wallet provider that has backed the experiment — has told Reuters that he plans to expand the project to 6,500 tobacco shops by February.

As Cointelegraph reported in November 2018, France’s tobacco federation has obtained permission to trade Bitcoin in its shops from the French Prudential Supervision and Resolution Authority (ACPR), an independent agency that operates under the auspices of the French central bank.

However, on the same day that the news broke, the country’s central bank denied the reports, saying that it had not greenlighted any deals related to cryptocurrencies.

Moreover, French stock market regulator (AMF) issued a related statement reminding the public of the risks of dealing with cryptocurrencies. In addition to that, AMF stated that PAYSAFEBIT SASU — the legal entity behind Keplerk — was not licensed by French authorities.

Nonetheless, in its most recent article Reuters reports that the French government has not imposed a de facto ban on selling Bitcoin at tobacco shops.

France continues to demonstrate a mixed attitude towards cryptocurrencies: for example, in December, the AMF blacklisted four crypto-related websites for unauthorized investment offerings. On Dec. 18, the French parliament rejected the majority of crypto-related amendments to the 2019 finance bill, which were expected to ease taxation for entrepreneurs and traders.


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Despite the regulatory uncertainty, several tobacco shops in Paris start selling Bitcoin following a November partnership with local crypto startup