Philippines-Based Company Seeding Crypto-Based Retail Loyalty Program
A Philippines-based company is looking to establish itself as the blockchain-based loyalty program for the crypto generation, Appsolutely CEO Patrick Palacios told us Monday. Palacios, in New York to meet with journalists and potential partners, is targeting fledgling cryptocurrency and…
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blockchain student organizations at universities, hoping to establish its Loyal Wallet app as the loyalty reward program provider for small- to medium-sized businesses looking to create a millennial following. Appsolutely is also partnering with gift card company CashStar, he said. “We want to globalize loyalty points,” said Palacios, saying the borderless ecosystem allows users to accrue and use points in participating countries using its LoyalCoin cryptocurrency. “There should be one coalition program where you can earn and redeem points anytime, anywhere and everywhere in any country in the world.” Customers download the Loyal Wallet app for Android or iOS devices to receive a discount or free item from a participating merchant. They can redeem points for goods or services or hold LoyalCoin with the hope the value grows, he said. Partners include 7-Eleven, Philippine Air Lines, FamilyMart and bubble tea company Gong Cha. Though crypto and blockchain won’t be mainstream for a number of years, the company hopes to get in on the ground floor of an emerging trend. Retailers join the loyalty program as part of a free trial; once the company sees a sales uptick that it can tag to a Loyal Wallet purchase -- at least 10 percent of transactions -- it charges the retailer per transaction. The company is building its U.S. business development operation in Santa Monica, California, Palacios said. A primary challenge is overcoming companies’ concern over blockchain and cryptocurrency, said Palacios, saying regulations protect the process. He cited Know Your Customer regulatory requirements that "you are who you say you are" where banks obtain information about the identity and address of their customers along with the use of two-factor authentication to prevent fraud. Palacios said he funded his company with $12 million raised over three months in an initial coin offering of LoyalCoin.