Are bitcoin loyalty programs the trend of the future?

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The restaurant industry was hit hard when the pandemic started. And while in most parts of the country restaurants have resumed semi-normal operations, many have not returned to pre-pandemic levels. A shortage of employees and rising costs for things like face masks, partitions and cleaning – in addition to fragile supply chains and rising food prices – have forced many restaurants to take action. of creativity.

Some restaurant chains have started offering unique loyalty programs to incentivize spending, starting with Bitcoin. This cryptocurrency has gained traction from everyday consumers to major banks and entire nations like El Salvador. It seems to be on its way to being accepted as a standardized currency, which can be seen in its growth. It’s up about 10% year-over-year (YOY) and more than 3,800% over the past five years.

Image source: Getty Images.

Have a meal, earn bitcoin

Several restaurants have started accepting Bitcoin for payment, including Starbucks, Burger King, and Subway. But not everyone has taken this monetary alternative to the next level: loyalty rewards programs. Lanrdy’s is perhaps the most notable exception in the restaurant industry. The brand has more than 500 locations across the country, including popular chains like Bubba Gump Shrimp Company, Cadillac Ranch, Mortons and Rainforest Cafe.

It’s not just restaurants that have started offering Bitcoin redemptions. Hotels like Wyndham, grocery chains like Safeway, and airlines like Northern Pacific have all started offering rewards exchanges for cryptocurrency. Several major credit card rewards companies have also joined us. You can now even use Bitcoin for Venmo transactions or carry a rewards credit card like BlockFi Rewards Visa Signature.

Image source: Getty Images.

Will the loyalty program work?

The point of loyalty programs is to generate additional consumer spending for the company. The customer gets the positive interaction of the “free” value from the business, and the business gets a bigger share of their spend. It’s a win-win. But the vast majority of points are not used. This creates accounting nightmares on the part of the business and in most cases does not create that good vibe scenario of having loyal customers.

Why don’t customers redeem their points? It might be a “saving” mentality, but often the reward just isn’t worth it. And this is where Bitcoin could shine. Offering a cryptocurrency reward gives the same freedom as cash redemptions, but instead of the rewards not increasing much in value, Bitcoin has the potential to increase a lot.

It seems pretty clear at this point that Bitcoin is here to stay. It is becoming a viable form of currency recognized around the world, with more businesses, banks, and governments accepting it daily. The loyalty rewards scene is simply the next evolution, as are rewards programs that offer points to be redeemed for cash. Bitcoin loyalty reward programs provide easy entry into what many still consider a confusing or daunting process. This allows someone who might otherwise be left on the sidelines to invest in Bitcoin without a lot of know-how and money out of pocket. Now that’s a win-win that’s hard to pass up.

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Liz Brumer-Smith has no position in the stocks mentioned. The Motley Fool owns and recommends Bitcoin, PayPal Holdings and Starbucks. The Motley Fool recommends Restaurant Brands International Inc. and recommends the following options: Short Calls January 2022 at $115 on Starbucks. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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