American Express, a financial service firm, is partnering with the digital retailer, Boxed, to adopt blockchain into its rewards program.
With this move, the company will empower merchants, using Hyperledger, to make custom Membership Rewards programs for users of American Express. Members will collect up to five times as many points as they normally would.
To make this work, a private channel will be created by the company on its blockchain connecting to each merchant who is using smart contracts to automatically fulfill the offers of the rewards program.
Once the American Express cardholder takes the offer, “the smart contracts will automatically pass the anonymized information on the transaction to American Express using its private blockchain channel,” the company stated.
With blockchain support, the retailers can effectively manage their offers, tailor-fit its Membership Rewards structure for the customers, and will be able to “assign bonuses to items at product or [stock keeping unit] level.”
This new system will let American Express get their retailers rolling “in a matter of weeks” as compared to months it usually takes to partner with a new company.