BMW chooses BNB chain and Coinweb for blockchain loyalty program

• BMW will incorporate decentralized technology into the development of a customer loyalty program and its day-to-day operations.
• Other automakers, notably Mercedes, Alfa Romeo and Ferrari, have also shown interest in exploring decentralized technology.

Famous German car manufacturer BMW and Coinweb (a blockchain infrastructure company) have partnered for the former to incorporate blockchain technology into its business, especially for its Thai customers. BMW will use the BNB chain to settle transactions, while Coinweb will provide decentralized infrastructure.

This incorporation will take place in two phases. The first phase is to incorporate blockchain technology into the automaker’s day-to-day operations, which will smooth operations as paperwork will no longer be necessary. It will also enable the company to streamline its car 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 rewards scheme for BMW customers, but it is built on blockchain. The various actions of each customer will determine their level and status in the ecosystem and the loyalty rewards they are entitled to.

These rewards can be redeemed for specified BMW products and services and access to a closed community that BMW plans to establish soon. In addition, customers can settle transactions using Binance’s native BNB chain.

Observe the growth of decentralized technology

In a recent interview with Cointelegraph, Toby Gilbert, CEO of Coinweb, shared insight into how the reward system will work. According to him, every customer touch point in 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 that they can redeem for other BMW products and services. Currently, this partnership is for BMW customers in Thailand. However, we hope to expand this program to other nations around the world. »

Bjørn Antonsson, a senior executive at BMW Thailand, noted that the company has observed the growth and adoption of decentralized technology over the past couple of years, including multiple use cases. Antonsson added that he is confident that incorporating blockchain technology into BMW’s day-to-day activities will increase transparency and efficiency. As a result, there will no longer be any need for paperwork.

Decentralized technology in cars

Besides BMW, other car manufacturers have also shown interest in exploring decentralized technology. The only difference is that BMW has been exploring this technology for the past four years. BMW’s first use of this technology was to trace its cobalt supply.

The tracking became necessary when the giant car company observed unethical practices in the cobalt supply chain. Meanwhile, Mercedes, another leading car manufacturer based in Germany, is also using blockchain technology. According to a report, cryptocurrencies and NFTs have been Mercedes’ most active advertising tool this year.

Ferrari’s recent partnership also involves NFTs, while Alfa Romeo (the famous car manufacturer from Italy) has been tracking car records with blockchain technology. With these automakers integrating blockchain technology into their operations, it’s only a matter of time before others start doing the same.