The partnership aims to incorporate smart contracts to simplify loyalty management for Hong Kong’s merchants, marking a significant step forward for Circle, the issuer of the USDC stablecoin.
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GLOCircle and Hong Kong Telecom (HKT) are collaborating to explore how blockchain can transform loyalty programmes, focusing on delivering real-time rewards and improving customer engagement. The partnership, solidified under a memorandum of understanding (MoU), aims to incorporate smart contracts to simplify loyalty management for Hong Kong’s merchants, marking a significant step forward for Circle, the issuer of the USDC stablecoin.
Circle’s expertise in Web3 technologies is expected to support a more dynamic and engaging loyalty experience for consumers. The collaboration comes at a time when traditional loyalty programmes face challenges, such as high operational costs and complex redemption processes. With consumers increasingly demanding faster and more personalised experiences, blockchain offers the transparency and immediacy needed to meet these expectations.
Using Circle’s programmable wallets and blockchain infrastructure, this partnership will enable secure, efficient integration of smart contracts into loyalty programmes, making it easier to track, manage, and redeem rewards. This shift could reduce the costs of running complex loyalty systems, benefitting retailers as they strive to streamline their loyalty offerings.
With many businesses now seeing loyalty programmes as strategic investments, innovations like this are critical. Through blockchain, Circle and HKT aim to address issues that often hamper traditional loyalty schemes. For instance, smart contracts can ensure secure, transparent transactions, while blockchain’s decentralised structure can eliminate delays in reward processing.
Additionally, Circle recently integrated USDC into real-time payment systems PIX in Brazil and SPEI in Mexico, allowing firms in these regions to access USDC directly via local financial institutions. This development significantly speeds up transactions and reduces the need for cross-border wire transfers.
Source: Circle
