New Partnership between Blockchain-based Startups to Unlock $500 Billion Worth of Loyalty Points as Liquidity for Carbon Credits
San Francisco — Loyyal, a blockchain-based platform that streamlines complex transactions involving loyalty points across multiple loyalty programs and their partners, and Clara Terra, a blockchain-based app that lets companies match consumer contributions to reduce carbon emissions, announced that they have entered into a strategic partnership.
By combining their strengths, the Loyyal / Clara Terra integration opens up the value of a consumer’s loyalty points as liquidity for reducing their carbon footprint, allowing a greater aggregate of value to be applied to reducing the global carbon footprint than would otherwise be possible.
“The partnership will make it easier for members of loyalty programs to offset and reduce their carbon footprint by using rewards points as the transfer of value,” says Greg Simon, CEO, Loyyal. “When a loyalty program such as airline miles, is supported by Loyyal, the reward points can be transferred directly to a UN-sanctioned carbon offset program through Clara Terra, simply and in real-time.”
The technical implications of this partnership are extraordinary. Both sides are built on blockchain technology, which enables multiple parties to transparently and safely share and manage key business information in a decentralized and secure manner.
“Loyyal’s platform gives Clara Terra a chance to offer our product to a large market via the Loyyal network. Being able to use loyalty points to have a positive effect on climate change is a win-win for companies and their customers,” says Chris O’Shea, CEO of Clara Terra. “The Loyyal/Clara Terra partnership creates the channel to this win-win.”
For Clara Terra, this enables full traceability in the carbon-offsetting supply chain. A consumer buying a 5-cent carbon offset for a cup of coffee can trace the offsetting origin back to its project source, such as a regional wind farm. Likewise, Loyyal uses a blockchain structure to maintain a full ledger of traceable customer loyalty points.
The overall combined result is that the two blockchain infrastructures combine to allow full traceability of a single loyalty point earned through Loyyal to the spending of this loyalty point in the Clara Terra platform.
The partnership between Clara Terra and Loyyal gives consumers an access point to become active in climate action and allows them to take environmental responsibility for their own actions and purchases.
One of the biggest issues in climate action today is the public’s lack of access to programs that make any real impact on people’s day-to-day lives. The partnership with Loyyal creates an opportunity for loyalty programs to have a real shared value impact. Clara Terra’s use of blockchain technology guarantees a secure, immutable ledger that links customer spend directly to carbon offsets including UN-sanctioned carbon offsetting programs.
“Clara Terra uses blockchain – a first for a carbon-offsetting platform. This creates trust into our system, allows for full transparency and makes tracking possible – all the way from the project producing the carbon repository to an individual offsetting their carbon footprint when flying from London to Dubai,” says O’Shea.
Loyyal, which has already signed a three-year agreement with Dubai-headquartered airline Emirates Group, says that as the first major airline rewards program to work with Loyyal’s blockchain platform, “Emirates will achieve operational cost savings, improve customer experiences, and reduce the financial liability that inherently comes with large-scale loyalty programs.”
Loyyal is focusing on adding to its platform more international loyalty program operators in industries beyond travel and hospitality such as e-commerce, financial services, automobile mobility, telecommunications, and wellness. Given the significant potential savings – as much as 90 percent of operating costs – Loyyal is seeing increased interest during this economic environment, as companies across industries are highly focused on keeping customers while lowering the bottom line.
Loyyal is reinventing how loyalty is created, rewarded, and managed. Using proprietary blockchain and smart contract technology, Loyyal’s interoperable loyalty and rewards platform brings a host of benefits to a highly fragmented industry and offers brands an innovative way to unlock the billions of dollars in value held captive in legacy loyalty programs today. For information about Loyyal, please visit www.loyyal.com or email [email protected].
About Clara Terra
Clara Terra enables people to take control of their own carbon footprint in a way that has never before been possible. Using blockchain technology, the Clara Terra platform gives consumers an affordable and accessible way to offset the environmental impact of their actions and purchases and gives businesses a direct communication channel to their customer base.
Learn more at Clara Terra at www.clara-terra.com.
Anne Szustek Talbot, BX3 [email protected]