Visa Inc. (NYSE:V) has recently introduced its Visa Web3 Loyalty Engagement solution, a new value-added service aimed at enhancing customer engagement for brands targeting next-generation users. The solution offers online treasure hunts, gamified giveaways, and diverse methods for earning and spending loyalty points.
This strategic move by Visa addresses the need for evolving loyalty programs to meet the changing preferences of modern customers. The Web3 Loyalty Engagement solution aims to improve Visa’s offerings for brands by allowing them to reward customers based on transactions and engagement. Traditional loyalty programs lacked customization, leaving room for innovation. According to Euromonitor International and Visa’s Loyalty Redefined, 77% and 60% of customers express a preference for real-world experiences and curated experiences, respectively. Visa has collaborated with SmartMedia Technologies to bridge the gap between Web2 and Web3 innovation, offering customized offers and experiences for users.
Visa’s solution provides customers with curated offers that can be redeemed for digital or real-world experiences, such as sports or travel. By seamlessly integrating the Web3 platform with its digital payment solutions, Visa aims to revolutionize loyalty programs for the future. According to The United States Loyalty Programs Market Intelligence and Future Growth Dynamics Databook 2023 report, the loyalty market is expected to grow by 12.3% to $27.5 billion in 2023. As more customers seek to benefit from loyalty programs, this growth is likely to contribute to increased transactions, positively impacting Visa’s revenue.
In addition to benefiting consumers, loyalty programs are expected to drive repeat purchases for retailers, positively impacting their sales figures and aiding in client retention for Visa. The new solution by Visa aims to break the chain of unredeemed rewards, addressing issues related to offer relevance and redemption complexity, thereby improving the overall success of loyalty programs for brands.
In terms of price performance, Visa’s shares have demonstrated an 8.4% gain in the past six months, outpacing the industry’s 6.1% increase.
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Author Stephanie Bédard-Châteauneuf 
