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Forget potential – cryptocurrency is already the most coveted “rewards program” in the minds of millennials.
According to a recent survey, over a third of all loyalty program members prefer to be rewarded in cryptocurrency than other traditional point programs. Up to 50% of the surveyed youth said they hope crypto redemption actually replaces the old-school rewards program.
What’s to be gained from cryptocurrency? And how are companies already incorporating blockchain into their loyalty programs?
Rewards Program – Then and Now
It’s easy to see why millennials and Gen-Xers aren’t that thrilled about traditional rewards programs. These were “rewards” given a generation ago. In the mid-20th century, Betty Crocker came up with the idea of a box top program built on coupons that could be redeemed later.
American Airlines’ Frequent Flier program worked in the 1980s because flying to major cities was commonplace for work.
Today’s work environment has changed, and telecommuting has grown in necessity and as a way to save on company expenses.
Today, working millennials are more interested in investment than redemption coupons or perks. They’re rightfully worried about the future and cryptocurrency is one of the most exciting investment opportunities of the new century.
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The Explosive Nature of Crypto
Decentralized cryptocurrency is new, and Bitcoin was the first to rock the world. Pioneered in 2009, the virtual coin started at 0.0008 and the first major transaction was someone ordering a pizza. (Owch) But over time, and even in the face of skepticism, Bitcoin exploded and reached $50,000 per coin.
The popularity of Bitcoin led to the creation of other cryptocurrencies – thousands, in fact. And while it’s easy to imagine crypto being a 2010 fad, the digital coin has finally gained mainstream acceptance.
The likes of Starbucks, Burger King, Microsoft, Overstock, Home Depot, and other world brands have joined the revolution and now trade Bitcoin as a currency.
Video game companies are even getting in on the action, letting gamers use crypto for in-game products.
Millennials are not only curious about crypto – but are already investing in it, statistically speaking. It’s perfectly logical then, that the best way for companies to retain the business of 18-40-year-old demographics would be to offer them “rewards” of something valuable to their sensibilities.
What Crypto Redemption Programs Offer
If you have a crypto redemption program then you are automatically issued digital assets in the form of “tokens” every time you make a purchase from the brand.
The brand could be a regular credit card or a retail store.
All transactions are viewable and transparent because of the blockchain. This virtual ledger keeps track of every trade, but most are “anonymized” by a digital block explorer. You get full transparency but with consumer privacy.
After accumulating digital tokens over time, you can redeem your assets in exchange for other cryptocurrency, or products and services, or even conversion to a fiat currency.
Credit cards that offer redemption programs, like the crypto credit card from SoFi, work through a payment processing network for legitimacy. This might be VISA, Mastercard, or AMEX. Your card is accepted worldwide.
Now, depending on your contract, you may earn crypto coins (or bits of coins) for qualified purchases.
Crypto Debit Cards
In previous years, the biggest problem was ensuring that crypto holders (people who earn or want to spend crypto funds) had access to their money within seconds. Most crypto was investment-oriented only. Most people couldn’t wait days for a transfer.
So the invention of the crypto debit card has allowed for a much faster conversion of crypto funds to fiat currency instantaneously. These cards are used just like a traditional debit card. But it’s not technically backed by a bank.
It’s backed by a crypto wallet with your finite currency, not credit. Coinbase is a leading crypto company offering a free wallet to its users.
Even for some debit cards, buyers can still earn digital coins, which may then be converted to more commonly known crypto coins, like Bitcoin or Ethereum, and so on. Despite the differences between credit and debit cards, a payment processing network still handles the crypto debit card in a similar fashion. It even works at ATMs!
Redeem Cryptocurrency and Invest
So if you’re interested in crypto investment, and you need a credit or debit card anyway, there’s not much to lose in applying for a credit card with a crypto redemption program. In some cases, you could get back 3-8% on all of your store purchases.
Crypto redemption may be the “future” in the sense that better things are coming, as the internet becomes more decentralized and technology improves.
But in terms of finally gaining mainstream acceptance, it’s clear to see that the world has jumped on the crypto bandwagon and is helping Generation Y and Z invest in their future.
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