Visa has unveiled a new web3 loyalty engagement solution designed to meet the evolving digital needs of modern consumers, delivering immersive experiences such as gamified rewards, augmented reality quests and new ways to use loyalty points.
The promotional video for the service states this
“Traditional loyalty programs are simply an exchange of spend and rewards, but consumers demand more in return for their loyalty. Web3 loyalty goes beyond expanding the ability for brands to reward customers for everything…’
Kathleen Pierce-Gilmore, Visa’s SVP and Global Head of Issuing Solutions, highlighted the changing landscape of interactions between consumers and brands. She highlighted that the new digital loyalty solution enables brands to offer rewards for transactions and active customer engagement, enabling seamless digital and real-world experiences. Pierce-Gilmore said:
“Consumers want to interact with brands in new ways, and traditional loyalty programs have not evolved in the past decade. Imagine earning a unique digital collectible, whether it’s buying tickets to a sporting event or participating in an augmented reality scavenger hunt.”
Visa’s research reportedly points to a shift in consumer expectations toward loyalty programs, demanding rewards beyond traditional points-based systems. Consumers are now looking for engagement-based rewards, in line with the fact that more than 77% globally value real-world experiences, and 60% prefer experiences tailored to their preferences.
Visa’s new solution will act as a bridge between Web2 and Web3 innovations, providing brands with a “customizable enterprise platform” to create immersive experiences. Customers can use a digital wallet to apply rewards for experiences across industries, including travel and sports.
What’s included in the Visa Web3 loyalty platform?
The platform is explicitly aimed at brands looking to develop their loyalty rewards programs and introduces digital collectibles as a core feature, moving away from traditional points-based systems. Customers can earn, redeem and collect these digital assets, which can be interacted with in augmented reality (AR), located on maps and used in a variety of other interactive forms, increasing the depth of the loyalty program experience.
This brand platform is reportedly designed for ease of use, eliminating the need for web3 developers in hopes of increasing its accessibility for brands to create and manage digital tokens, collectibles, and campaigns. It also offers brands the opportunity to develop customized wallets with a two-click registration process, aimed at simplifying user engagement. So we could see branded Web3 wallets hit the market in the near future. The platform also includes an integrated Customer Relationship Management (CRM) system with capabilities for real-time event triggering and first-party data management, which is essential for effective customer interaction and understanding.
Additionally, the solution offers a range of customer engagement features. These include digital event tickets or sweepstakes, token-gated digital access for unlocking perks, loyalty coins that can be used on geo-fenced quests, and digital coupons. These features are designed to add versatility to the loyalty program, allowing brands to tailor their approach based on their specific audience and goals.
A key feature of this solution is the ability to issue digital objects and experiences based on card transactions. This integration of Visa’s established digital payment solutions with the new web3 platform aims to deliver a more seamless and integrated customer experience, potentially increasing customer loyalty and continued engagement with the brand.
Tyler Moebius, CEO of SmartMedia Technologies, Visa’s web3 partner on the project, expressed his excitement about the partnership with Visa. He emphasized that
“This partnership is not just about improving customer rewards; it is about redefining the value exchange between brands and consumers in a mobile payments-centric world.”
SmartMedia Technologies uses a blockchain-agnostic protocol called the SmartNFT protocol. This protocol was developed by BLOCKv, a company they acquired. The protocol reportedly enables the creation and issuance of intelligent NFTs that can be dynamically linked to a number of leading blockchains. This means that SMT does not rely on a single blockchain, but can operate across multiple blockchains, providing flexibility and broad compatibility.