- Circle and HKT are exploring blockchain technology to transform their loyalty programs with rewards and improved customer engagement.
- The collaboration focuses on integrating smart contracts to simplify loyalty management for merchants.
USDC stablecoin issuer Circle has taken a major step forward by partnering with Hong Kong Telecom (HKT) to explore a blockchain-based customer loyalty solution.
Which was sealed as part of a declaration of intent partnership aims to promote creative interaction between Hong Kong’s retailers and their customers. With its technological knowledge of Web3, Circle aims to offer a more dynamic and interactive loyalty system for consumers.
Blockchain integration improves customer loyalty
The partnership comes at a time when traditional loyalty programs face various difficulties, including expensive operational costs and ineffective redemption processes.
Consumers want faster, more personalized experiences from loyalty programs. Blockchain technology could provide the transparency and real-time capability needed to meet these needs.
The secure, simplified integration of smart contracts into loyalty programs enabled by Circle’s programmable wallets and blockchain infrastructure makes incentives easier to track, manage and redeem.
Aside from improving the customer experience, this change will likely help stores by reducing the cost of running complicated rewards programs.
With many companies now viewing customer loyalty programs as a strategic investment, modernization is clearly becoming important. With the help of blockchain, Circle and HKT want to address typical problems of traditional loyalty programs.
While smart contracts guarantee that transactions are open and secure, the decentralized nature of blockchain helps eliminate delays in reward processing. USDC has already been integrated into the real-time payment systems PIX in Brazil and SPEI in Mexico. This allows businesses in these countries to access USDC directly through local financial institutions, significantly speeding up transactions and minimizing the need for international transfers.
