Circle and HKT Sign Memorandum of Understanding to Develop Customer Loyalty Solutions

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Suja Soundararajan

Author

Suja Soundararajan

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Suja was recognized with the Women In Crypto 2024 award by BeInCrypto for her leadership in crypto journalism.

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October 29, 2024 01:25 ET

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Circle, issuer USDC Stablecoin has teamed up with Hong Kong Telcom (HKT) to explore customer loyalty solutions. The solution, based on Web3 technology, will improve consumer interactions with merchants by promoting dynamic interactions.

The partners officially signed a memorandum of understanding (MoU) on Tuesday. The solution will leverage Circle’s expertise in Web3 services and HKT’s extensive merchant and customer engagement capabilities.

Consumer expectations regarding loyalty programs have gradually changed. According to Statista, The size of the global loyalty market is estimated at US$5.57 billion. and 70% of consumers say loyalty programs are a leading factor in their purchasing decisions.

Circle offers a comprehensive set of enterprise-grade developer tools that make building blockchain solutions faster, easier, and more secure.

According to the official statement, collaboration will include programmable Circle wallets to optimize your experience with Web3. This will allow partners to securely use digital assets and smart contracts in existing consumer and enterprise applications.

“This collaboration is a testament to our commitment to helping businesses unlock the potential of blockchain technology to create great customer experiences, reimagine loyalty programs and give merchants the tools they need to thrive in the digital economy,” Jeremy Allaire, CEO of Krug, said.

Circle brings loyalty programs online

Earlier this year, the crypto company introduced Circle smart contract platformwhich installs on-chain loyalty programs within users’ apps, allowing them to seamlessly earn and redeem rewards.

The shift from traditional methods to online loyalty programs can foster innovative experiences and allow brands to expand their reach into other communities, the company said.

Additionally, the decentralized nature of Web3 allows for innovative reward structures such as tokenization, creating new forms of value for customers.

In January, payment giant Visa launched its Web3 loyalty service, which includes gamified giveaways. The Visa platform allows brands to create digital wallets in which they can store rewards points and experiences on behalf of consumers.

In addition, leading designer brands such as Hugo Boss made a bet on Web3 to increase customer loyalty.