M2O blockchain start-up tokenises loyalty programmes
Blockchain start-up M2O has announced plans to integrate all loyalty programmes under a single umbrella and will launch a crowdsale to raise funds as it introduces a new ecosystem.
The Korean venture noted that loyalty programmes are often known for lost points by ill-informed customers and financial liability due to unclaimed rewards for businesses. This will change as its new paradigm integrates them under a single umbrella.
M20’s aim is to.create an ecosystem that unites existing bonus programmes from different companies and build a global membership services platform on the blockchain. This will enable customers to merge all their reward points from various loyalty schemes into a single wallet.
The project has started a technical cooperation between M2O and global IT services group Oracle to ensure strong security and transparency of services.
A $100bn saving
According to Henry Kim, the company’s chief executive officer (CEO): “Not only will M2O help save more than $100bn from unclaimed reward points, but will also offer exciting benefits to customers like having all of their bonuses in one place and being able to spend them as real currency around the world. Or even converting their points into real cash. Isn’t it what all we dream of?”
Kim added that businesses will also enjoy advantages offered by M2O. By getting access to its large clients’ pool and big data analysis, companies can reduce marketing costs and strengthen their positions on the market. M20 has promoted the message that today’s reward programs need a change and the newest techs can encourage it.
So although an average customer is part of 14 or more such schemes, they are far from ideal.Lack of proper information, a barrage of promotional messages, emails and confusion on how to redeem points often leads to them expring before they can be used. Moreover, the incentives are inflexible: a person can’t exchange or sell them, but either redeems the points or loses them.
The Korean venture integrates all bonuses into a single M2O wallet that allows users to spend rewards on products and services from businesses around the world.
The M2O “Mileage Bank,” based on blockchain, will provide services such as cloud funding, asset management and bonus generation. M2O Coin will become the gateway to the project’s ecosystem and holders can use tokens as payment and convert them into real cash.
The project also plans to open its own premium shopping mall, where holders will be able to use reward points and spend M2O coins.
M20 is also offering a platform where points will be accrued specifically for small businesses without their own reward points system, to create customer loyalty.
The venture says its mission is to unleash cryptocurrency capabilities to disrupt the existing loyalty points market to benefit both the customers and businesses. With blockchain technology previously “intangible” bonuses will finally reach a new level of usage and will become transferable, tradeable and secure.
M20 said that after a successful first crowdsale, it is “confidently moving” towards its global initial coin offering (ICO) phase. Token crowdsale begins on Monday October 29, 16:00 JST time (UTC +9) and finishes on Friday November 23, 16:00 JST time (UTC +9).
All contributions will be accepted in ethereum (ETH), while the minimum amount of it is 1 ETH. The project is targeting a soft cap of $5.6m and a hard cap of $56m.