The Financial Services Institution American Express (AmEx) had made known to the public a blockchain application to its Membership Rewards program in partnership with online merchant Boxed, Associated Press reported May 23rd.
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AmEx had made known to the public that it is going to integrate a blockchain technology developed by Hyperledger, an open source blockchain project under the Linux Foundation, that will enable merchants design customized offers for AmEx cardholders so as to increase customer relations.
This will allow the company to reward its clients for purchasing some items, but AmEx has noted that it isn’t available to all merchants but expects to make the program available to almost all their merchants as soon as possible.
Apart from promoting some items, implementing the new program efficiently will enable AmEx and its merchant clients target ads to limited customers of choice. Merchants will be able to make “product-targeted offers” while maintaining their own inventory systems. Chris Cracchiolo, the head of the Membership Rewards program for AmEx, explained:
“They can create programs based on a time of day, day of the week, by incentivizing a customer to download their app. The number of ways merchants can reward customers with Membership Reward points will be exponentially increased.”
In October last year, It was gathered that American Express Travel Related Services Co., Inc., the travel and merchant sector of AmEx, had applied a patent for a custom customer reward system using blockchain technology.