BMW taps Coinweb and BNB chain for blockchain loyalty program

German car manufacturer BMW plans to integrate blockchain technology into its daily operations and create a blockchain loyalty program for its customers in Thailand. The popular automaker has brought in blockchain infrastructure firm Coinweb as its decentralized architecture provider and BNB Chain to settle transactions.

The integration of blockchain technology into BMW’s workflow will take place in two phases. Firstly, the decentralized technology will be integrated into BMW’s daily operations with the aim of automating time-consuming manual processes and streamlining the company’s car financing services.

The second phase of the project will see Coinweb develop a custom Web3 application for BMW’s customer loyalty program. The program will use a blockchain-based rewards plan to incentivize BMW Group customers. A customer’s level and status in the ecosystem will be determined by the loyalty rewards they have earned through various actions.

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Owners will be able to use their rewards to purchase goods and services from BMW as well as from an affiliated ecosystem in the future. Binance’s native BNB chain will be used to settle transactions.

Speaking about how customers will be rewarded under the upcoming loyalty program, Coinweb CEO Toby Gilbert told Cointelegraph that customers will be rewarded every time they have touchpoints with the BMW ecosystem, whether it’s “buying a new car or going for a service.” he further explained:

“Customers will be rewarded with loyalty points and they will be able to spend within the ecosystem. Our hope is that there will be a future global rollout, but at the moment our partnership is for Thailand.”

BMW Thailand’s leasing manager Bjørn Antonsson said the firm has been actively monitoring the progress of decentralized technology and its various use cases over the years. Antonsson hoped that the integration of blockchain technology into their daily operations would eliminate the manual paperwork and contribute to the company’s efficiency and transparency.

The interest of automakers in decentralized technology is nothing new, and BMW has been involved in the technology since 2018. BMW first used blockchain technology to track its cobalt supply and ensure that its products are supplied using ethical practices. Apart from BMW, another popular German car manufacturer Mercedes has been actively using non-fungible tokens and cryptocurrencies as promotional tools.

Italian carmaker Alfa Romeo used blockchain technology to track car records, while Ferrari’s new deal has hinted at NFT integration as well.