Bitcoin

Korean luxury retailers manage blockchain reward points

The MiL.k blockchain rewards platform has partnered with Shinsegae Duty Free, the Seoul-based luxury retail chain, to ensure compatibility and loyalty point management.

The new partnership enables Shinsegae customers to connect their existing award accounts to the MiL.k mobile app.According to a press release shared with Cointelegraph on May 11.

Adoption of “millions” of customers?

Once users have network accounts, they are reported to be able to exchange their Shinsegae loyalty points for the internal cryptocurrency MLK, which is currently trading at $ 0.19 per token. MLK can in turn be redeemed for reward points from other partner providers such as Yanolja, a Korean travel accommodation platform.

Korean luxury retailers manage blockchain reward points
Korean luxury retailers manage blockchain reward points

Such partnerships allow MiL.K to increase the value of loyalty points in the leisure, lifestyle and travel sectors, making it a more effective effort, the press release said.

Jayden Jo, CEO of MiL.k, He believes adding Shinsegae Duty Free to his company’s network will also expose “millions of customers” to the blockchain, which will lead to further acceptance across Asia.

The MiL.K platform is based on Hyperledger Fabric and is ERC-20 compliant. Samuel Yun, Head of International Business at Milk Partners, told Cointelegraph why the startup relies on blockchain in the first place:

“By using blockchain, we can strengthen the mutual credibility between service companies. Since all transactions are written in general ledgers and encrypted in the blockchain, service companies do not have to worry about data leaks and simply use the synergies within the alliance. “

The transaction fees for exchanging tokens within the platform are set at 1.5%. “It wouldn’t harm our users because the platform’s minimum discount rate is 5% for all premium purchases,” argued Yun.

Similar use cases in retail

In late 2019, the Japanese retail giant became Rakuten allowed its customers to exchange their Rakuten group loyalty points for three major cryptocurrenciesnamely Bitcoin (BTC), Ethereum (ETH) and Bitcoin Cash (BCH) through its subsidiary for the exchange of cryptocurrencies. The move was aimed at simultaneously driving the introduction of cryptocurrencies and promoting Rakuten’s loyalty program.

At the beginning of the year, the cryptocurrency exchange bitFlyer teamed up with the technology service provider Tpoint Japan So that their Japanese customers can exchange their loyalty program points for Bitcoin and receive additional rewards for payment in cryptocurrencies.

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