The company is leveraging Hyperledger to let merchants create custom Membership Rewards programs for American Express cardholders. Its initial trial with Boxed will allow members to earn five times the normal number of points on certain products.
American Express will create a private channel on its blockchain with each merchant to facilitate information transfer. Merchants can then create smart contracts which automatically fulfill rewards program offers. Once the offers are live, the smart contracts will automatically pass the anonymized information on the transaction to American Express using its private blockchain channel, according to the company.
As a result, the merchant will be able to control what offers they are making, as well as customize its Membership Rewards structure. Further, the merchants will be able to assign bonuses to items at product or stock keeping unit level.
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