Dive Brief:

• Visa launched a Web3 Loyalty Engagement Solution Thursday, a service that enables brands to add gamified features, such as giveaways and augmented reality treasure hunts, to their loyalty programs.
• The payment provider’s solution offers companies loyalty programs that allow their customers to earn loyalty points through curated experiences. It also enables digital wallets for easier management of points and rewards.
• “Consumers are looking to engage with brands in new ways, and traditional loyalty programs have not evolved over the past decade,” said Kathleen Pierce-Gilmore, SVP and global head of issuing solutions at Visa, in a prepared statement. 

Dive Insight:

With consumers’ expectations for loyalty program benefits on the rise, Visa is looking to be the solution.

Modern shoppers don’t want to just earn discounts based on money spent — they also want new ways to earn and redeem points as well as new uses for loyalty apps, according to Visa.

Consumers cited offers or gifts just for being a customer and tools for making the shopping process more convenient among the most influential loyalty program features, according to a survey of 40,000 global consumers by Visa and Euromonitor International released in October.

The survey also found that more than three-quarters of consumers worldwide value real-world experiences, a preference Visa’s solution aims to cater to by integrating travel and sports perks options, according to Pierce-Gilmore.

Visa is not alone in expanding loyalty programs. Ulta Beauty is expanding its existing birthday gift offering to let shoppers choose an option from a portfolio of brands, while Southwest AIrlines is letting passengers combine rewards points and cash to pay for flights.