BMW chooses BNB chain and Coinweb for blockchain loyalty program

• BMW will incorporate decentralized technology in developing a customer loyalty program and its daily operations.
• Other carmakers, notably Mercedes, Alfa Romeo, and Ferrari, have also shown interest in exploring decentralized technology.

Famous German carmaker BMW and Coinweb (a blockchain infrastructure firm) have partnered for the former to incorporate blockchain technology into its business, especially for its Thailand customers. BMW will utilize the BNB chain to settle transactions, while Coinweb will provide decentralized infrastructure.

This incorporation will be in two phases. The first phase is incorporating blockchain tech into the carmaker’s daily operations, which will smoothen operations as paperwork will no longer be necessary. Also, it will enable the company to streamline its automobile financing services. The second phase is the introduction of a customer loyalty program.

For this purpose, Coinweb will create a custom Web3 app for this loyalty program. The app is a reward scheme for BMW customers, but it is built on blockchain. The various actions of each customer will determine their tier and status in the ecosystem and the loyalty rewards entitled to them.

These rewards are redeemable for specified BMW products and services and access to a closed community which BMW plan to establish soon. In addition, customers can settle transactions using Binance’s native BNB chain.

Observing the growth of decentralized technology

In a recent interview with Cointelegraph, toby gilbert, Coinweb chief executive, shared insights into how the reward system will work. According to him, every customer’s touchpoint within the BMW community has a reward point. Examples of touchpoints include paying for a service or buying a car.

Gilbert also said, “there will be loyalty points for customers which they can redeem for other BMW products and services. At the moment, this partnership is for BMW’s Thailand customers. However, we hope to extend this program to other nations worldwide.”

Bjorn Antonsson, a top-level executive with BMW Thailand, remarked that the company has been observing the growth and adoption of decentralized tech in the last couple of years, including several use cases. Antonsson added that he is confident that including blockchain technology in BMW’s day-to-day activities will boost transparency and efficiency. Thus, there will no longer be a need for any paperwork.

Decentralized technology in automobiles

Besides BMW, other carmakers have also shown interest in exploring decentralized technology. The only difference is that BMW has been exploring this technology over the last four years. BMW’s first use of this tech was tracking its cobalt supply.

The tracking became necessary as the giant automobile firm observed unethical practices in its cobalt supply chain. Meanwhile, Mercedes, another leading automobile manufacturer based in Germany, is also utilizing blockchain technology. According to a report, crypto coins and NFTs have been Mercedes’ most active promotional tools this year.

Also, Ferrari’s recent partnership involves NFTs, while Alfa Romeo (the famous car manufacturer out of Italy) has been tracking car records with blockchain tech. With these automobile makers integrating blockchain tech into their operations, it is a matter of time before others start doing the same.