There are many advantages of crypto based loyalty programs over traditional solutions.
1. Low cost: traditional loyalty management systems are costly; not all merchants can even afford them. Lyra crypto transactions are inexpensive or even free in some cases, and end user apps are based on mobile devices which eliminates the cost of plastic cards.
2. Ownership: the users are the owners of their reward points and gift cards so they can freely transfer them, sell, or trade.
3. Omni channel: the merchants are the owners of their reward, discount, and gift tokens, so they can use them on any platform outside Shopify, including other ecommerce platforms, proprietary implementations, and brick and mortar points of sale.
4. Extensibility: the network is open to third-party developers (including merchants and buyers themselves) so they can offer additional apps and services using the same merchant tokens to both merchants and buyers. For example, alternative wallet apps, or reporting apps, or promotions campaign apps, token marketplace, exchange, etc.
5. Flexibility: a merchant can decide to accept other merchants’ reward points, promotional coupons, or gift cards, or create a group (even temporary) of merchants for this purpose, and this is very easy to implement on crypto token-based solutions.
6. Reliability: The owner of centralized loyalty of gift card solution can decide to shut down, go bankrupt, or raise prices. Decentralized permissionless networks do not go anywhere and cannot change the rules without supermajority support.
7. Access: some merchants may have a problem with an access to a traditional solution due to their geographical location, political status, financial situation, credit history, etc. Decentralized solutions are open to everyone.
8. Privacy: the users (buyers) of crypto loyalty, rewards, and gift card programs don’t have to disclose their identity or any other information in order to participate (unless the merchant explicitly requires it). No credentials are stored in a centralized provider’s database like in traditional solutions.
9. Trending: psychological factor - it’s fun to deal with crypto tokens rather than boring abstract points, and no one has offered such a solution yet.