Visa revealed a new web3 loyalty engagement solution designed to meet the evolving digital needs of modern consumers, offering immersive experiences such as gamified rewards, augmented reality scavenger hunts and new ways to use loyalty points.
The service’s promotional video states that
“Traditional loyalty programs are simply an exchange of spend and rewards, but consumers demand more in exchange for their loyalty. Web3 loyalty goes beyond expanding opportunities for brands to reward customers for everything…”
Kathleen Pierce-Gilmore, Visa Executive Vice President and Global Head of Issuance Solutions, highlighted the changing landscape of consumer-brand interactions. She highlighted that the new digital loyalty solution allows brands to offer rewards for transactions and active customer engagement, thereby facilitating seamless digital and real-world experiences. Pierce-Gilmore said:
“Consumers are looking to interact with brands in new ways, and traditional loyalty programs have not evolved over the past decade. Imagine winning a unique digital collectible, whether by purchasing tickets to a sporting event or participating in an augmented reality scavenger hunt.
Visa’s research reportedly indicated a shift in consumer expectations of loyalty programs, demanding rewards beyond traditional points-based systems. Consumers now seek rewards based on engagement, which is consistent with the fact that more than 77% of consumers globally value real-world experiences and 60% prefer experiences tailored to their preferences.
Visa’s new solution is expected to serve 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 various industries, including travel and sports.
What does the Visa Web3 loyalty platform contain?
Explicitly aimed at brands looking to scale their loyalty rewards programs, the platform introduces digital collectibles as a core feature, moving away from traditional points-based systems. Customers can earn, trade and collect these digital assets, which they can interact with in augmented reality (AR), located on maps and used in various other interactive forms, enhancing the depth of the loyalty program experience.
This brand platform would be designed to be easy to use, eliminating the need for Web3 developers in hopes of broadening its accessibility for brands to create and manage digital tokens, collectibles, and campaigns. It also offers brands the ability to develop custom portfolios with a two-click signup process aimed at simplifying user engagement. So, we could start to see brand-affiliated Web3 wallets hitting the market in the near future. The platform also includes an integrated customer relationship management (CRM) system with real-time event triggering and first-party data management capabilities, which is essential for effective interaction and understanding with customers .
Additionally, the solution offers a range of features for customer engagement. These include digital event or sweepstakes tickets, secure digital token access to unlock benefits, loyalty coins for use in geo-fenced scavenger hunts, and digital coupons. These features are designed to add versatility to the loyalty program, allowing brands to personalize their approach based on their specific audience and goals.
An important 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 enable a more seamless and integrated customer experience, potentially improving customer loyalty and ongoing engagement with the brand.
Tyler Moebius, CEO of SmartMedia Technologies, Visa’s web3 partner in this project, expressed his excitement about the partnership with Visa. He emphasized that
“This collaboration is not only about improving customer rewards; it’s about redefining the value exchange between brands and consumers in a world driven by mobile payments.
SmartMedia Technologies uses a blockchain-agnostic protocol called the SmartNFT protocol. This protocol was developed by BLOCKv, a company they acquired. The protocol would enable the creation and issuance of smart NFTs that can be dynamically created on 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.