Deloitte: Rewards Programs a Blockchain Fit

Blockchain, FinTech, Innovation, Investing, News | April 27, 2017 By:

Rewards programs are a perfect fit for blockchain technology, says a report  from the Deloitte Center for Financial Services.

The Deloitte report claims that blockchain can help achieve cost savings, economies of scale and near real-time transparency in rewards programs, and will fit seamlessly with existing programs through smart contracts.

“Loyalty rewards are also a type of digital currency, so it is only natural that the engine that enables Bitcoin to be transacted among multiple parties in exchange for services, goods, and even other monetary tender could do the same for loyalty reward points,” the report noted. It also will make the largely fragmented programs more interoperable, the report said, adding that it will also near instantaneous redemption and bartering of rewards points across vendors.

Deloitte’s report also recommended blockchain loyalty programs a perfect testing ground for other uses of distributed ledgers.