Circle, the issuer of USDC, has partnered with BitoGroup, a cryptocurrency exchange and FamilyMart, a retail store chain in Taiwan, to introduce a “points-to-crypto” service. The service is set to redefine the loyalty points system in the country because it will enable customers of FamilyMart to redeem their loyalty points for USDC and other cryptocurrencies. FamilyMart, Taiwan’s second-largest convenience store chain, has a long-running loyalty points programme. Therefore, the partnership syncs with Circle’s strategy to increase its foothold in Taiwan and promote mass adoption of digital financial services.
Taiwan’s massive loyalty points market and Circle’s mission
Taiwan has one of the highest concentrations of convenience stores, and the loyalty points system has become deeply embedded in the retail economy. According to a press release by Circle, market survey data shows that in 2021, about 87% of shoppers participated in the loyalty points system, with 99% of them regularly redeeming points for items. This highlights the significance of loyalty points in Taiwan.
As a result of the collaboration among the three companies, FamilyMart customers can now exchange their FamiPoints for digital currency. That means that over 17 million people who are already part of FamiPoints’ ecosystem stand to benefit. This is a major milestone for the Taiwanese loyalty points market, and it will promote easier access to the digital economy.
From Circle’s perspective, the partnership will not only benefit the loyalty points market but also help onboard the masses in Taiwan into the larger digital economy and leverage the benefits of digital fintech. One of the key benefits of converting FamiPoints into USDC is that it will stop the loyalty points from losing value over time. In addition, since the whole process, does not incur transaction costs, it will likely incentivise more people to try out digital currency.
Circle has teamed with BitoGroup to leverage the latter’s foothold in Taiwan to promote loyalty points-to-crypto program. BitoGroup, is a digital asset exchange with almost 800,000 users, and a market leader in Taiwan. It runs several different services, such as BitoPro, a crypto exchange, the NFT empowerment platform BELS, and 02 META, the social media platform built for the metaverse.