Different financial institutions and services providers are trying to work with blockchain technology so as to improve their products. This time, American Express has decided to partner with online retailer Boxed so as to integrate blockchain technology into the rewards program.
American Express Integrates Blockchain Technology
American Express announced on Wednesday May the 23rd, that it will be using Hyperledger technology that will be powering a loyalty rewards program. The company will be providing it specifically for Amex cardholders, which will be able to earn points five times faster.
Additionally, the blockchain system will also allow merchants to control which products they are offering and allow them to assign bonuses to some items or products. But, American Express reserves the right to control which brands, products will be able to be promoted.
This would allow merchants to easily develop programs that would be based on time of day and day of week. Users would download the application of the merchant which means that they would be able to sell more and at better prices.
Once the offers are available, a smart contract will send an anonymized transaction to American Express on its private blockchain. In this way, Amex will be able to identify the card member and issue their reward points.
In the past, American Express was able to file a patent application that was intended to make a rewards program to be stored on a blockchain.
The abstract of the patent reads as follows:
“Systems and methods for presenting a personalized value added offer during an advanced verification process are provided. An access control server may receive an enrollment verification request compromising data relating to an account holder. The server may determine an enrollment status of the account holder and determine a value added offer based on the account holder.”
Other important financial institutions like JP Morgan, IBM, Intel, Accenture are working with distributed ledger technology and some of them even with virtual currencies.