• Why did Starbucks collaborate with Polygon for their NFT Loyalty Program?

  • Starbucks will collaborate with the Ethereum second layer solution Polygon on its “Odyssey” non-fungible token (NFT) loyalty scheme. The project, which was announced more than 5 months ago, coincides with the return of the company’s founder, Howard Schultz, as CEO, as well as internal challenges.

    As a result, “Starbucks Odyssey” aims to provide customers with a novel experience while potentially alleviating some of these internal issues. The company’s Starbucks Rewards Loyalty program will be expanded with an NFT marketplace built on this blockchain platform.

    Customers will thus have access to exclusive digital assets that will provide them with additional benefits. According to the source, Starbucks has given investors an early glimpse of their new Polygon-based loyalty program, arguing that it will complement the current reward approach, which has experienced a lot of popularity.

    The standard program allows Starbucks customers to top it up with money and pay for their drinks while receiving free drinks and WiFi. This program debuted in 2008 and was updated in 2010 with the release of the company’s mobile app.

    The initiative rewarded users with points provided an easy way for people to include and store payment methods, and preloaded their cards with money to “save them time.” The new NFT program aims to push beyond these limits.

    Starbucks Adopts Polygon Blockchain

    The company named Adam Brotman, the architect of their Mobile Order and Pay System and the 2010 mobile app, as a special advisor, according to the report. Brotman collaborates with many Starbucks marketing, loyalty, and technology teams.

    Starbucks CMO Brady Brewer said that the firm has been working on this project for at least six months. The corporation has been quick to embrace technological innovation, notably in the realms of bitcoin and digital assets.

    Starbucks was one of the first firms to build a global digital asset platform in collaboration with crypto exchanges such as Bakkt and the New York Stock Exchange (NYSE). Until the company’s primary focus had been payments.

    Brewer argues that their investment in NFTs is part of a strategy to improve their business model and expand their existing loyalty program. Furthermore, the firm executive stressed the potential for Polygon NFTs to establish communities and provide unique access to products.

    The corporation, however, will not publicize the usage of blockchain technology in its loyalty program. Brewer stated:

    It happens to be built on blockchain and web3 technologies, but the customer — to be honest — may very well not even know that what they’re doing is interacting with blockchain technology. It’s just the enabler.

    Why Is This Polygon Collaboration Important For Starbucks’ Loyalty Program?

    According to the article, Starbucks patrons will need to log in to the web app with their current loyalty program credentials in order to access the Polygon NFT platform. Users will have access to specific tasks that, when done, will allow them to acquire digital assets known as “journey stamps.”

    Many traditional sectors have implemented NFTs, but many have been hesitant to embrace them due to alleged environmental problems. To avoid any potential criticism, Starbucks appears to be launching the technology without officially alerting its users.

    Starbucks has yet to divulge the cost of its digital assets and other crucial elements of the platform, which will launch later this year. Brewer elaborated on how NFT will assist the corporation in transforming its successful reward program:

    There will be a lot of ways for people to earn (rewards) without having to spend a lot of money. We want to make this super easy and accessible. There will be plenty of everyday experiences customers can earn like virtual classes or access to limited edition merchandise, for instance. The range of experiences will be quite vast and very accessible

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