Invented by Calvin Chan, Christopher Cracchiolo, Andras Ferenczi, Andrew Martin Baal Thomas, American Express Travel Related Services Co Inc

The market for loyalty points distributions using decentralized loyalty IDs has been steadily growing in recent years. With the rise of blockchain technology and the increasing popularity of cryptocurrencies, businesses are exploring new ways to incentivize customer loyalty and engagement. Decentralized loyalty IDs offer a secure and transparent solution that allows customers to easily manage and exchange their loyalty points across various platforms. Traditionally, loyalty programs have been managed by individual businesses, with customers earning points for their purchases or engagement with the brand. However, this system often comes with limitations, such as the inability to transfer points between different programs or the risk of points expiring before they can be redeemed. Additionally, customers may find it cumbersome to keep track of multiple loyalty cards or accounts. Decentralized loyalty IDs aim to address these challenges by providing a unified platform for loyalty point management. These IDs are stored on a blockchain, a distributed ledger that ensures transparency and security. Customers can create their loyalty ID, which serves as a digital wallet for their loyalty points. This ID can be used across multiple businesses and platforms, allowing for seamless point accumulation and redemption. One of the key advantages of decentralized loyalty IDs is the ability to transfer points between different programs. This means that customers can consolidate their loyalty points from various brands and use them towards a desired reward. For example, a customer who has accumulated points from multiple airlines can now combine them to book a flight or upgrade their seat. This flexibility enhances the value of loyalty points and encourages customers to engage with more brands. Furthermore, decentralized loyalty IDs can help address the issue of points expiration. With a centralized loyalty program, customers may lose their points if they fail to redeem them within a certain timeframe. However, with decentralized IDs, the expiration of points can be eliminated or extended, as the blockchain ensures the secure storage and transfer of loyalty points. This gives customers peace of mind and encourages long-term engagement with the brand. Businesses also benefit from decentralized loyalty IDs. By participating in a shared loyalty ecosystem, companies can attract new customers who are enticed by the ability to consolidate and exchange their loyalty points. This can lead to increased customer retention and higher levels of engagement. Additionally, businesses can gain valuable insights into customer behavior and preferences through the blockchain, allowing for more targeted marketing and personalized offers. However, there are still challenges to overcome in the market for decentralized loyalty points distributions. One of the main hurdles is the adoption of blockchain technology by businesses and customers. While blockchain offers numerous advantages, it is still a relatively new concept for many individuals and organizations. Education and awareness campaigns will be crucial in promoting the benefits and encouraging adoption. Another challenge is the interoperability between different loyalty programs and platforms. For decentralized loyalty IDs to truly revolutionize the market, businesses need to collaborate and establish common standards for point exchange and redemption. This will require industry-wide cooperation and the development of interoperable protocols. In conclusion, the market for loyalty points distributions using decentralized loyalty IDs holds great potential for both businesses and customers. By leveraging blockchain technology, businesses can create a more seamless and flexible loyalty program that enhances customer engagement and loyalty. Customers, on the other hand, can enjoy the convenience of managing their loyalty points in a unified platform and the ability to exchange them across various brands. While there are challenges to overcome, the future of decentralized loyalty points distributions looks promising.

The American Express Travel Related Services Co Inc invention works as follows

A blockchain-based loyalty points distribution system can be configured to provide decentralized IDs. The decentralized loyalty IDs may allow distribution of loyalty rewards in response to transaction-based events and non-transaction-based events, including behavioral interactions. The system can include a partner loyalty system that receives rewards events from customers. The loyalty partner system can determine the loyalty ID of the customer and then write the rewards event into the blockchain. A loyalty provider system can receive notification of the reward event, write the loyalty rewards to the customer and distribute them. The loyalty provider can instruct the loyalty partner that they must pay for the reward and update the customer and partner balances in the blockchain.

Background for Loyalty points distributions using decentralized loyalty IDs

Payment networks implement a variety of systems to process transactions between merchants, customers and payment networks. The payment network is a group of merchants that are authorized to charge customer accounts. The payment network has a transaction account for the customer. A merchant will typically send a payment request to the payment network, along with the transaction details and cardmember’s account number. Payment networks that use loyalty points often limit the number of merchants who can accept points.

Payment networks are typically faced with increased costs and limitations when compared to the traditional payment model. Payment networks use secure protocols to handle payment requests. These protocols, along with the network infrastructure, are expensive to maintain and develop. High network costs result in higher fees for merchants who use the payment network. Additional programs supported by a payment network such as loyalty points, multi-merchant loyalty point partnerships, non-transaction-based loyalty point distributions, or decentralized loyalty IDs, for example, further increase costs associated with security and infrastructure.

Systems, Methods, and Articles of Manufacture (collectively the?system?) The disclosure relates to a method for distributing loyalty points using decentralized loyalty identifications. A loyalty iFrame may be invoked in response to a rewards event. The loyalty iFrame can be associated with a provider of loyalty and is invoked using an embedded SDK based upon the rewards event. The system can determine a loyalty Id based on the login credentials received by the loyalty iFrame. The system can write a reward for a customer to a blockchain loyalty, wherein that reward includes the rewards event and loyalty ID. It may also update a loyalty point ledger linked to the loyalty ID.

The operation to determine the loyalty iframe may include: receiving the customer login credentials via the loyalty iFrame; transmitting the customer log-in credentials to the provider of loyalty; and receiving the loyalty iFrame in response to a match by the loyalty provider between the customer login credentials and the loyalty iFrame.

In various embodiments, a loyalty provider may receive a message in response to submitting the customer’s reward to the blockchain. The loyalty provider can distribute a local incentive based on a customer’s login credentials and update the loyalty point ledger in the blockchain using the distributed local incentive. Based on the local reward, the loyalty provider can update the loyalty partner balance in the blockchain. In response to the update of the loyalty partner balance on the blockchain, the system can receive a notification for a balance change. The system can initiate a payment based on a loyalty partner’s balance. Once the payment is received, the loyalty provider will update the loyalty partner’s balance on the blockchain.

In various embodiments, a rewards event can be received as a result of behavioural interaction. The rewards event can be received as a result of an initiated transaction. The initiated transaction can be part of a multi merchant loyalty point partnership and the rewards event will be based on that multi merchant loyalty point partnership.

The foregoing features and components may be combined without restriction in different combinations, unless otherwise indicated. The following description will make these features and elements, as well as their operation in the disclosed embodiments, more obvious.

BRIEF DESCRIPTION

The subject matter of this disclosure is specifically pointed out and clearly claimed in the final portion of the specification. The detailed description of the disclosure and the claims can be better understood when viewed in conjunction with the drawings, where like numbers denote similar elements.

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