EZPOS Holding Singapore, a cloud-based point-of-sale systems provider, today began an initial coin offering crowdsale of tokens for a product designed to help merchants maintain the loyalty of customers.
The EZPOS platform uses a blockchain, a type of distributed ledger technology, that makes its system difficult to tamper with and also provides value to its tokens.
Using a digital currency, called EZTokens or EZT, merchants using EZPOS’ point-of-sale network can assign, distribute and track loyalty points “owned” by customers. The information on who has how many points and what incentives they are entitled to can also be stored in the blockchain.
For example, a customer with a history of purchasing a particular brand will receive loyalty points that can then be exchanged for a discount on that brand in the future. Or, EZTokens could be distributed to customers to pay for products from merchants on the network.
The company said it hopes that when the loyalty point system is used by a wide range of businesses, such as fashion retailers, supermarkets and restaurants, consumers will use the points in exchange for any product at the same price as regular currency.
Every time the customer makes a purchase of that brand and points are generated, the EZPOS blockchain would build up a historical record that could be plumbed later by marketers and brand advocates.
According to EZPOS, the growing popularity of mobile devices has led to a market that not only makes it easier to identify repeat customers but also provides a method to reward them using apps. As a result, the loyalty market is expected to be worth $6.2 billion by 2023 and could be much larger given merchants’ ability to tap into it.
EZPOS is not the only company looking into using loyalty systems and tokens to keep customers coming back to their stores. Blockchain company Colu Technologies Ltd. recently bet on this as well with $14.5 million venture capital raised in December to produce a localized digital currency. Colu’s solution also allows merchants to produce tokens for local buyers that can be used to provide incentives – in the form of discounts, coupons and other offerings – with the objective to encourage shoppers to purchase within local communities.
To fund its platform, EZPOS launched an initial coin offering today expected to sell 9 million tokens from now until Feb. 4. A presale of tokens that ended Sunday already sold 1 million tokens.
With this ICO, EZPOS will use the funds to jumpstart its project and seed merchants and interested parties with the tokens needed to transact on the network, which is also intended to spark the platform’s ecosystem. That ecosystem would be immediately available to users of EZPOS, whose network now serves more than 10,000 merchants and millions of local and foreign customers across Vietnam, Singapore and Kuala Lumpur.
It is possible to register to purchase EZT in the ICO today from EZPOS and become part of the crowdsale.
Image: EZPOS Holding Singapore
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