American Express (AmEx) has partnered with online wholesale retailer Boxed for a pilot project of its blockchain-enhanced Membership Rewards programme.
The US-based financial services company is leveraging a blockchain platform developed by HyperLedger for this project.
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The programme enables merchants to provide reward points to AmEx cardholders based on their loyalty and purchases of certain products.
Under the partnership, Boxed customers purchasing items such as Dove soap, Planters nuts, Cheerios cereal will get additional 5x bonus points.
To be available for other clients over the coming months, the programme allows merchants to decide the products and type of rewards to be covered under it.
It enables merchants to incentivise customers with specific offers and real-time visibility.
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By GlobalDataEach merchant will be able to create smart contracts on AmEx’s blockchain. These contracts automatically fulfil the programme offers.
When the offers are live, the smart contracts will automatically send the anonymous transaction information to AmEx using a private blockchain channel.
American Express vice-president of membership rewards & loyalty benefits Chris Cracchiolo said: “They can create programmes based on a time of day, day of the week, by incentivising a customer to download their app.
“The number of ways merchants can reward customers with Membership Reward points will be exponentially increased.”
