BMW, the German automaker, has teamed up with BNB Chain, the Binance-native blockchain, to employ blockchain technology across the company and launch a blockchain-based loyalty program for BMW’s customers in Thailand. According to a company release, Coinweb will provide the program’s decentralized architecture, and the BNB chain will be used for transaction settlement.
The allure of Web3 and how the program will run
BMW’s move is indicative of a growing institutional interest in blockchain technology, even as the cryptocurrency market, the industry’s mainstay, struggles to recover from a rough 2022. Thus, if the trend continues, more organizations will likely begin incorporating Web3 into their product offerings, which might serve as tailwinds for the industry’s potential recovery in 2023.
The program will incentivize BMW Group clients by using a blockchain-based rewards system. BMW will implement decentralized technology in two stages: first, in its daily operations, to minimize complicated paperwork; then, in a subsequent stage, to create a customer loyalty program. BMW plans to implement the decentralized technology into its daily operations first in an effort to eliminate time-consuming manual processes and speed up the company’s financial services.
Part two of this project will have Coinweb develop a special Web3 app for BMW’s loyalty program. All users will be placed in one of several tiers based on the number of loyalty points they have accumulated via their engagements with the company. Also, in the future, customers will be able to spend their rewards on a variety of BMW and linked ecosystem products and services.
To alleviate a major problem with applications for auto financing, the software will incorporate an AML and KYC solution based on Thailand National Digital Identification (NDID). Distributed ledger technology (DLT) will be gradually included in BMW’s workflow by Coinweb as well. The first will involve regular commercial activities, and the second one will involve improving the company’s financial operations.