American Express to Use Blockchain for Loyalty Program

Program will allow merchants to reward customers for purchasing specific items at their stores
24 May 2018   341

The international payment giant American Express (AmEx), in partnership with the Hyperledger consortium and the online retailer Boxed, integrates distributed ledger technology into its customer loyalty program. This 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 American Express cardholders for purchasing goods in partner networks of stores.

Also, the project participants note that the program implemented in partnership with Boxed allows customers to earn five times as many loyalty points as usual. The new technological solution allows commercial firms to increase the involvement of their AmEx cardholder customers by offering products tailored for them, as well as regulating the reward structure.

AmEx partners have the right to independently choose products for which they would like to increase demand through a compensation program. The only exception is firearms, tobacco and alcohol products. American Express, in turn, reserves the right to independently 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.

IOTA Ledger Apps used by Norway’s Bank

A memorandum of understanding (MOU) have been sighed by DNB ASA (Den Norske Bank), Norway’s largest financial group, and the IOTA Foundation (IOTA)
01 June 2018   267

DNB and IOTA will collaborate to explore applications of the IOTA Tangle, a “third-generation” distributed ledger (DLT). The 2 parties will be partnering to find new business models relatively to their respective industries. The head of DLT at DNB, Lasse Meholm, declared that one goal of the project is better understand the technology and to let those at the bank who work with customers find opportunities for new use cases. 

Among other things, the technology is designed to handle hundreds of thousands of microtransactions per second. We will not let go of the market associated with this ecosystem that arises around these transactions.
Lasse Meholm
Head, DLT at DNB

The representative of IOTA, one of the founders, David Sønstebø, reported that he believes this could soften the relationship Norwegian banks have on the crypto industry.

I hope and believe it. The IOTA Foundation will contribute to separating useless crypto-projects from the serious ones.
David Sønstebø
Founder, IOTA

DNB ASA, Norway’s largest bank and one of the biggest in the Nordic countries had previously been studying blockchain technology through the R3 consortium. As reported by local news E24, DNB also has several ongoing projects with different technologies including Ethereum, Hyperledger, and EOS.

Blockchain technology is being used by the financial institutions around the world.   For instance, Canada’s central bank, Toronto Stock Exchange operator TMX Group, and non-profit organization Payments Canada, recently finished tests showing that blockchain technology is efficient for instantaneous securities settlements.