Retail adoption remains one of the major focus points for stakeholders in the cryptocurrency industry and projects like Plutus aim to create viable on-ramps for the masses to interact with digital tokens via crypto-back and cash-back loyalty rewards.
In recent times, several projects have launched crypto rebate programs tailored towards incentivizing retail adoption between both shoppers and online merchants. Plutus is reportedly expanding the rebates niche beyond centralized reward programs, inking partnerships with retail giants across the world.
3% in PLU Token Rewards
In a blog post published on the platform’s Medium account, Plutus elaborated on its plan to offer users 3% crypto-back on online purchases via its Plutus Card. According to the company, the crypto loyalty rewards payments will be in the form of its native Pluton (PLU) token.
PLU tokens are similar to air miles or in-store loyalty bonuses except they are earned at over 400 million retailers. Plutus says its crypto-back rewards aim to decentralize the loyalty rewards industry. An excerpt from the blog post reads:
“As Plutus evolves into a fully-fledged consumer finance application with more advanced fiat capabilities, we believe our non-crypto customers will gravitate towards crypto by unintentionally acquiring our blockchain-based token.”
Pluton (PLU) are a unique decentralised loyalty rewards token. They are not tied to a single merchant's universe.
— Danial Daychopan (@DDhopn) February 26, 2020
Apart from crypto rebates, the Plutus loyalty rewards ecosystem also has a cash-back component. Users who earn the 3% PLU crypto-back can stake their earnings to unlock additional perks such as discounts and cash-backs at specific retailers. Plutus reportedly has over 20 affiliate partnerships with international brands like Airbnb and Skyscanner to make this possible.
For Plutus, the addition of cash-backs means non-crypto customers can be further incentivized to participate in the program. By so doing, crypto adoption can gain even broader penetration among a larger demographic of online shoppers.
Plutus also says it is working towards more brand partnerships, as well as, creating additional use cases for the PLU token.
The company is also looking to improve the overall utility of its native token by making it possible to convert PLU tokens to fiat via the PlutusDEX platform. Users can exchange PLU for fiat which is then added to their Plutus Card balance allowing even more purchases across millions of global retailers.
Apart from allowing PLU to fiat conversions, Plutus is creating added incentives for greater Pluton token commerce by making these conversions feeless. According to the blog post, Plutus has removed the 1.3% transaction fee hitherto associated with PLU conversions.
Crypto Rebates and Loyalty Rewards
As previously reported by Blockonomi, the intersection between blockchain and loyalty points program has seen the emergence of several projects looking to use the emerging technology to democratize the rebates and loyalty rewards industry.
Back in June 2019, bitcoin (BTC) earning service Lolli inked a partnership deal with Hotels.com. Projects like Lolli look to reward online shoppers with BTC rebates thus incentivizing both merchants and retailers towards increased crypto adoption.
Most crypto rebates programs are attempting to make the practice of “stacking sats” one that extends beyond the cryptocurrency scene. In July 2019, digital rewards startup Gojoy raised $10 million as part of efforts to finance its crypto rebates service.
Even Bitcoin Futures platform Bakkt is also reportedly looking to enter the crypto rebates scene. Earlier in February, the Intercontinental Exchange (ICE)-owned company purchased Bridge2 Solutions — a loyalty solutions provider for both retailers and consumers.
Some platforms are even moving beyond crypto rebates to allowing users to invest their crypto-back in major tokens like BTC or Ether (ETH). These services enable users to acquire cryptos from the spare change from microtransactions like paying for coffee or buying bus tickets.