EZPOS Holding Singapore, a cloud-based Point of Sale (POS) systems provider that serves thousands of businesses across Southeast Asia, is releasing its own digital currency. Known as the EZToken, this currency will advance the company's efforts to improve customer loyalty programs while making digital money viable on a global scale.
Founded in 2011, EZ Solution, a subsidiary of EZPOS Holding Singapore has expanded rapidly to provide more than USD $1 billion worth of annual transaction over POS software for more than 10,000 businesses. The company does not limit itself to facilitating payments, but also helps clients attract more customers. In particular, it seeks to enhance clients' customer loyalty programs, providing them with the tools to reward returning customers without depending on expensive third-party services.
Creating its own currency will bolster EZPOS Holding Singapore's efforts to improve loyalty programs. Clients in its POS network will be able to accept EZTokens for payments, and because customers who hold the currency are likely to be loyal to the network, they can offer them discounts and promotions as a reward for that loyalty. Moreover, because the EZPOS Holding Singapore network is so large and is only likely to keep expanding, the token is likely to be adopted on a global scale, setting the stage for widespread cryptocurrency use.
The EZPOS platform uses a blockchain, a type of distributed ledger technology, that makes its system difficult to tamper with and also provides value to its tokens.
Using a digital currency, called EZTokens or EZT, merchants using EZPOS’ point-of-sale network can assign, distribute and track loyalty points “owned” by customers. The information on who has how many points and what incentives they are entitled to can also be stored in the blockchain.
For example, a customer with a history of purchasing a particular brand will receive loyalty points that can then be exchanged for a discount on that brand in the future. Or, EZTokens could be distributed to customers to pay for products from merchants on the network.
The company said it hopes that when the loyalty point system is used by a wide range of businesses, such as fashion retailers, supermarkets and restaurants, consumers will use the points in exchange for any product at the same price as regular currency.
Every time the customer makes a purchase of that brand and points are generated, the EZPOS blockchain would build up a historical record that could be plumbed later by marketers and brand advocates.
To comprehend the EZToken's full value, it's first necessary to understand the problems with current customer loyalty programs and how EZPOS Holding Singapore will addressed them. EZPOS has stated that the company has noticed the untapped potential of customer loyalty. Shoppers who have bought from a particular brand before are far more likely to buy from it again, giving the company a strong incentive to appeal specifically to them. And it is becoming easier and easier to identify and reward past customers, thanks in large part to the growing popularity of mobile devices. As a result, the loyalty market is projected to be worth USD $6.2 billion by 2023, and could be even larger if businesses can find more effective ways to recognize and reward loyal customers.
EZPOS is not the only company looking into using loyalty systems and tokens to keep customers coming back to their stores. Blockchain company Colu Technologies recently raised $14.5 million through venture capital in December to produce a localized digital currency.
To fund its platform, EZPOS launched an initial coin offering today expected to sell 9 million tokens from now until Feb. 4. A presale of tokens that ended Sunday already sold 1 million tokens.
With this ICO, EZPOS will use the funds to jumpstart its project and seed merchants and interested parties with the tokens needed to transact on the network, which is also intended to spark the platform’s ecosystem. That ecosystem would be immediately available to users of EZPOS, whose network now serves more than 10,000 merchants and millions of local and foreign customers across Vietnam, Singapore and Kuala Lumpur.