The global loyalty economy, a critical element of contemporary commerce, holds an estimated $500 billion in unspent rewards locked within outdated and rigid structures. Gabriele Giancola, CEO and co-founder of qiibee, advances a novel approach to transforming this landscape using blockchain technology. Founded in 2017, qiibee aims to enhance the liquidity and usefulness of loyalty points, potentially positioning rewards as a future universal payment method.
According to Giancola, the global rewards economy is expected to grow significantly, with a compound annual growth rate of 26% projected to increase its value to $599 billion by 2025. He notes that despite this potential, many loyalty programs do not fully exploit their primary asset—loyalty points—resulting in consumer disengagement and large volumes of unused rewards. Giancola sees blockchain technology as a solution, introducing liquidity and flexibility to loyalty programs, thus allowing users to access their points' value more easily.
The integration of blockchain technology aims to create a more cohesive and interoperable loyalty system. According to Giancola, this technology enhances liquidity and offers increased flexibility, enabling users to exchange points across a wider range of partners and platforms. Such interoperability allows for instant transactions, granting consumers immediate access to the value of their points and enhancing the purchasing power of loyalty currency.
qiibee's strategy includes establishing partnerships that demonstrate the potential of blockchain in loyalty programs. One notable example is its collaboration with Lufthansa’s Miles & More program, which illustrates how blockchain can streamline loyalty integration. Through API and white-label solutions, qiibee allows the tokenization and exchange of various loyalty rewards, including points, miles, and non-fungible tokens (NFTs).
The qiibee Foundation, based in Switzerland, plays a crucial role in advancing this initiative by developing the necessary blockchain infrastructure. While qiibee offers a marketplace for immediate business benefits, the Foundation focuses on the technological advancements driving these changes, aiming to build a sophisticated and globally connected loyalty ecosystem.
NFT integration within loyalty programs presents considerable potential. By enabling companies to tokenize unique loyalty assets—such as exclusive experiences—NFTs offer a new transactional capability within loyalty programs. This development broadens the application of NFTs beyond art, introducing practical uses within the loyalty sector.
Despite challenges such as the necessity for widespread adoption and adaptation to blockchain technology, its benefits for loyalty programs are evident. Giancola argues that blockchain simplifies reward reconciliation, reduces implementation costs, and enhances system efficiency. Moreover, it bolsters trust by safeguarding against fraud and ensuring data integrity.
qiibee's approach, underpinned by blockchain, offers significant insights into the future development of loyalty programs. This ecosystem promises to transform rewards from static tokens into dynamic entities within the global market, highlighting a shift that could redefine traditional views on consumer loyalty and engagement.
