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Circle, the financial technology firm issuer of USDC, has recently announced that it is teaming up with Hong Kong Telecom (HKT) to advance customer loyalty solutions based on Web3 technology.
The agreement signed on Tuesday establishes a partnership to boost customer service and merchant connections in Hong Kong by creating engaging and responsive loyalty solutions. Circle’s focus on using blockchain from a customer experience perspective matches Hong Kong’s vision of becoming a hub for digital assets and blockchain.
Circle and HKT's collaboration marks a significant step in elaborating customer loyalty programs. With increased expectations of consumers from loyalty programs, including value and engagement, the partnership seeks to transcend the generic structure of rewards, employing blockchain for on-chain loyalty tools.
Statistics show that 70% of customers are affected by loyalty programs, and the global market size is expected to reach $5.57 billion. This shift is attributed to evolving customer needs and the fact that blockchain can fulfil emerging needs through program flexibility of loyalty structures.
These new loyalty programs will be provided via Circle’s Programmable Wallets, which enable the management of DLT-based assets and smart contracts within current consumer and enterprise applications. This allows merchants to better engage with their customers and customers to safely engage with loyalty rewards.
Circle’s Web3 technology is built on a suite of developer tools that offer efficient, secure, and scalable solutions for creating blockchain-based applications. This platform, including the Smart Contract Platform introduced earlier this year, enables brands to implement on-chain loyalty rewards, allowing customers to earn and redeem rewards within user applications seamlessly. By incorporating decentralised technology, Circle’s solutions also support enhanced privacy and security, which consumers increasingly value.
For HKT, the partnership is an opportunity to amplify its merchant services and engagement strategies using Circle’s blockchain expertise. Monita Leung of HKT Digital Ventures emphasised the company’s enthusiasm for the collaboration, noting its potential to enrich HKT’s customer interactions. By integrating Circle’s blockchain tools, HKT can offer merchants in its network new ways to connect with consumers, broadening the appeal and functionality of loyalty programs.
The partnership between Circle and HKT aligns with Hong Kong’s initiatives to position itself as a leading hub for blockchain technology and digital assets. During Hong Kong Fintech Week, Christopher Hui, Secretary for Financial Services, announced the government’s plans for new tax breaks on virtual assets.
These concessions aim to attract global investors and enhance Hong Kong's traditional position in the cryptocurrency world. Moreover, proposals are made to enhance the regulation of specific activities: stablecoin issuers, custodial services, and OTC trading platforms and custodians for stablecoins.
