Circle set to develop blockchain-based customer loyalty solutions for Hong Kong merchants

USDC stablecoin issuer Circle has partnered with Hong Kong Telcom to create customer loyalty solutions powered by Web3 technology that will diversify the way consumers discover and interact with merchants.

According to Circle’s Oct. 29 press release, the stablecoin issuer has officially signed a memorandum of understanding with Hong Kong media, technology and telecommunications firm HKT to explore blockchain-based customer loyalty solutions.

The two companies aim to develop customer loyalty solutions powered by Web3 technology. The partnership will bring together Circle’s Web3 services and HKT’s merchant ecosystem to create customer loyalty solutions based on blockchain technology.

One of the key components that will be integrated is Circle’s Programmable Wallets. Wallets are designed to streamline the Web3 experience and enable partners to securely use digital assets and smart contract features in their consumer and enterprise applications.

Circle co-founder and CEO Jeremy Allaire said that by collaborating with HKT, Circle can help businesses unlock the potential of blockchain technology in customer loyalty programs.

He said Circle’s Web3 technology can help Hong Kong merchants create value-driven customer experiences, create new blockchain-based loyalty programs and provide merchants with the tools they need to thrive in the digital economy.

“We are excited to collaborate with HKT to bring our Web3 Services to the forefront of customer loyalty innovation,” said Allaire.

Monita Leung, CEO of HKT Digital Ventures, said HKT is committed to driving innovation in the financial technology and digital economy sectors. Leung added that Circle’s expertise in Web3 technology complements its strengths in customer engagement and business services.

“Together, we aim to deliver unique loyalty solutions that enable merchants to build deeper connections with their customers in Hong Kong,” said Leung.

In Hong Kong, we collaborated with HKT to explore transforming customer loyalty with a cutting-edge Web3 customer loyalty solution and bring the future of customer engagement to in-market merchants.

Read more about the collaboration: https://t.co/M6Zqto5c0f

— Circle (@circle) 29 October 2024

Earlier this year, Circle released a Smart Contract Platform that offers on-chain loyalty programs integrated into user applications, allowing customers to earn and redeem rewards via blockchain.

In Circle’s blog post, the company highlighted the benefits of switching from traditional methods to in-chain loyalty programs. Circle emphasized that the decentralized structure of Web3 can be used to innovate customer reward systems and create new forms of value for customers with features such as tokenization.

It is known that other companies have also partnered with Web3 platforms to develop blockchain-based customer loyalty programs. In August 2023, Etihad Airways, the national airline of the United Arab Emirates, announced plans to launch a Web3 loyalty program built on non-fungible tokens.

Partnering with real-world asset tokenization company Arcube, Etihad Airways’ loyalty program allows customers to stake NFTs and earn Etihad Guest Miles. You can use miles for flights, upgrades and other benefits.

In April 2023, Boba Guys, a beverage retailer with stores in California and New York, partnered with the Solana network to develop an in-chain loyalty program. The program will include NFTs and token-driven experiences to increase customer engagement.