HONG KONG, CHINA - Media
OutReach - 22 October 2018 - More than 50% of the USA's almost 4 billion loyalty rewards accounts are
currently inactive, recent research shows, as users struggle to manage and
redeem their points timely and merchants overspend on infrastructure and
GFX's new rewards platform, powered by blockchain
technology, seeks to address these pain points by consolidating multiple
merchant reward schemes into one integrated cross-loyalty system.
In short, customers will be able to redeem or exchange
any participating merchant's loyalty points, while merchants should see big
savings on infrastructure and network maintenance and gain valuable big data
insights and industry support.
The problem with loyalty cards
Customer loyalty programs have been in existence since
the 1700's, when retailers handed out copper pieces as rewards.
Currently there are an estimated 3.8 billion reward
plan subscriptions in the USA alone, almost 29 per household.
A recent study however claims that 54% of these
accounts are inactive, with almost 1 in every 3 consumers abandoning their
rewards programs without having redeemed a single point.
Customers complain that there are too many programs,
with a lack of transferability or reward options. Points are difficult and
time-consuming to manage and often expire without their knowledge. Users
ultimately lose interest and abandon these programs.
On the other side of the checkout counter, merchants
struggle to justify their high IT expenditure on infrastructure and maintenance
when measured against the usually low customer participation and engagement
The GFX Ecosystem
GFX's network will help affiliated users maximize their
rewards. GFX points have no expiration date and can be used to redeem goods and
services from any participating merchant.
For merchants, the platform promises increased
customer awareness and engagement, access to big data, a sophisticated
off-the-shelf IT infrastructure as well as favorable accounting where points
are not reflected as liabilities on the balance sheet.
How it works
Participating merchants link their loyalty programs to
GFX's platform at an exchange rate that is floated
relative to GFX's digital reward asset.
For example, Merchant A is an airline, while Merchant
B is a boutique store. One hundred of Merchant A's points equal 20 GFX points, while Merchant B's 100 points are worth 50 GFX points.
Users can use all of Merchants A and B's points for a total of 70 GFX points that never
expire and can be used for any participating merchant's rewards.
Customers will be able to join the GFX platform
directly or through different loyalty-rewards programs.
The GFX Team
GFX's experienced team is headed by Mr. Nori Ishihara
(CEO), an expert in M&A and global investments. Other senior members
include Mr. Eyal Rosenthal (COO), previous MD of the $600M private equity fund Infinity
Group, Mr. Shoichiro Tanaka (CSO), director of VLC Holdings and Mr. Vincent Lee
CTO and founding member of Coinbama, a Hong Kong based digital asset platforms.
You can stay up to date with the latest developments
of GFX's project at www.gfxfoundation.com