Visa Debuts Web3-Centric Loyalty Rewards

Visa has introduced a rewards program designed to connect with consumers in virtual spaces.

The company’s Web3 Loyalty Engagement Solution is designed to help brands reach customers via programs such as “gamified giveaways” and “augmented reality treasure hunts,” along with new ways to earn loyalty points, per a Thursday (Jan. 4) news release.

“Consumers are looking to engage with brands in new ways, and traditional loyalty programs have not evolved over the past decade,” Kathleen Pierce-Gilmore, Visa’s head of global issuing solutions, said in the release.

“Our new innovative digital loyalty solution empowers brands to reward customers not only for their transactions but for their active engagement, paving the way for secure, seamless and immersive digital and real-world experiences at their fingertips.”

The company points to research showing consumers wanting personalized, real-world experiences from their loyalty programs, and to be rewarded not just for loyalty, but for their engagement with the brand.

“The new Visa solution, powered by SmartMedia Technologies, can provide brands with an enterprise platform that bridges Web2 with Web3 innovation that is user-grade and can be customized to create curated experiences and offers for consumers,” the release said.

The solution lets brands offer a digital wallet where consumers can collect rewards towards virtual, digital, or real-world experiences, in sectors such as sports and travel.

And travel is one industry in which card reward programs have proven highly effective at fostering customer loyalty, as PYMNTS Intelligence research has shown.

“Leveraging Item-Level Receipt Data: How Card-Linked Offers Drive Customer Loyalty,” a study done in collaboration with Banyan, found that 65% of credit or debit card users prefer to shop with brands or merchants where they are loyalty or rewards program members.

“Additionally, the study found that 34% of consumers are willing to try out new brands or merchants, while 23% are occasional shoppers who sporadically visit specific brands or merchants,” PYMNTS wrote in September.

As for the travels sector, the research found that nearly two-thirds of consumers said they were very or extremely likely to use card-linked offers for local travel purchases in the next three months, while 60% said they planned to do the same for long-distance travel purchases.

The study also found that millennial consumers are the happiest with card-linked loyalty programs compared to other age groups, with 62% of millennials saying they were very satisfied with the experience.