MiL.k — a crypto rewards startup — has inked a partnership deal with popular South Korean retailer Shinsegae Duty Free to expand the adoption of digital currency-based loyalty points. The move follows on from a similar collaboration with South Korean travel agency Yanolja last month.
Crypto rebates and other forms of loyalty rewards tied to cryptocurrencies appear to be gaining in popularity. Some pundits say these programs can help to foster a greater appreciation for digital by rewarding online shoppers with digital ‘coins.’
MiL.k Pursuing Expanded Blockchain Rewards Arena in South Korea
The blockchain rewards startup announced the news of its partnership with Shinsegae Duty Free via a press release issued on Monday (May 11, 2020). As part of the partnership, customers of the popular retail outlet in Seoul can link their accounts to the MiL.k app and spend loyalty points earned from shopping within the MiL.k marketplace.
Shinsegae customers earn ‘GOD’ loyalty points and under this partnership, shoppers can exchange them for MLK coins; the native token of the MiL.k ecosystem. Ownership of MLK will allow Shinsegae customers to earn loyalty points on other merchant participants in the expanding MiL.k marketplace.
Commenting on the partnership with Shinsegae, MiL.k co-founder Jayden Jo remarked:
“Shinsegae Duty Free is one of the top duty-free brands in Korea with millions of customers throughout Asia. By adding top-tier service companies like Shinsegae Duty Free and getting their rewards to be securely traded on blockchain, we will create a new paradigm for the rewards market and accelerate the mass adoption of blockchain.”
Established in 2019, MiL.k aims to simplify the loyalty rewards ecosystem by leveraging blockchain technology in integrating multiple services offering rebates and other rewards into one platform. Using its MLK tokens, and a planned partnership network with many retail brands, the project hopes to provide users with the ability to exchange loyalty rewards.
The MiL.k project effectively tokenizes the loyalty points reward system, highlighting the increased utilization of blockchain technology in decentralizing global business processes. The resultant crypto rewards marketplace can also act as an on-ramp for attracting more adoption of cryptocurrencies.
In April 2020, MiL.k announced its partnership with Yanolja — a leading travel agency in South Korea. The collaboration with Yanolja was a first for the project with subsequent partnerships with the likes of vehicle sharing service Dilka.
Crypto Rewards and Rebates Gaining Momentum
The crypto rewards and rebates scene is continuing to undergo significant expansion with more participants entering the market. With the expansion of the ecosystem, different approaches to tokenizing loyalty reward points have emerged.
While projects like MiL.k focus on decentralizing the entire market, others are creating on-ramps for online shoppers to earn rebates in the form of crypto tokens from retailers. Some of the projects in the latter category are signing deals with major retail brands to allow their customers to earn Bitcoin (BTC) and other cryptos as rewards for patronage. These crypto rebates allow online shoppers to ‘stack sats’ without having to go through the hassle of purchasing BTC from crypto exchanges.
Another emerging area of the crypto rewards scene is in providing a cash-back option. The introduction of cash-back in the blockchain loyalty points arena is likely to incentivize more participation in the market.
At the heart of these crypto rewards initiatives is the spurring of retail cryptocurrency adoption which some pundits say is the next milestone for the industry. Despite the promise of the technology surrounding digital coins, their utilization in the electronic payment arena still popular channels like credit cards and online banking.