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

USDC stablecoin issuer Circle has partnered with Hong Kong Telcom to build customer loyalty solutions backed by Web3 technology that will diversify how consumers discover and engage with merchants.

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

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

One of the key components that will be integrated is Circle’s Programmable Wallets. The wallets are designed to streamline the Web3 experience, enabling partners to securely utilize digital assets and smart contract features within their consumer and enterprise applications.

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

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

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

CEO of HKT Digital Ventures, Monita Leung said that HKT is committed to promoting innovation in the financial tech and digital economy sectors. Leung added that Circle’s expertise in Web3 technology complements their strong suit, which is customer engagement and merchant services.

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

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 through the blockchain.

In Circle’s blogpost, the company emphasized the benefits that come from a shift from traditional methods to on-chain loyalty programs. Circle highlighted Web3’s decentralized nature can be used to innovate customer reward systems with features like tokenization, creating new forms of value for customers.

Other companies have also been known to partner with Web3 platforms to develop blockchain-based customer loyalty programs. In Aug. 2023, Etihad Airways, the national airline of the United Arab Emirates, announced its plans to launch a Web3 loyalty program built on non-fungible tokens.

Partnering with with real-world asset tokenization firm Arcube, Etihad Airways’ loyalty program allows customers to stake NFTs and earn Etihad Guest Miles. The miles can be redeemed for flights, upgrades, and other perks.

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