American Express is testing blockchain capabilities to manage loyalty programs.
The international payment giant American Express (AmEx) in partnership with the blockchain consortium Hyperledger and online retailer Boxed integrates distributed Ledger technology into its customer reward program. It is reported by AP News.
According to AmEx representatives, Hyperledger technology allows merchants to create various reward programs. The latter, in particular, allow to reward holders of American Express payment cards for purchasing goods in partner networks of stores.
The project participants also note that the program implemented in partnership with Boxed allows customers to earn five times more loyalty points than usual. The new technological solution allows trading companies to increase the involvement of their customers who are AmEx cardholders by offering products specially selected for Them, as well as by regulating the structure of rewards.
AmEx partners have the right to choose the products for which they would like to increase the demand through the reward program. The only exceptions are firearms,tobacco and alcohol. American Express, in its turn, reserves the right to choose the promoted brands.
According to representatives of American Express, a full version of the new blockchain system can be launched in the coming weeks.
Payment giant American Express is a premium member of the blockchain consortium Hyperledger since the beginning of last year.
We also remind that American Express is studying the possibilities of blockchain technologies that allow to increase the speed of transactions.
