When merchants want to increase the loyalty of their customers to their businesses, they often create loyalty programs. However, as a consumer, if you want to benefit from loyalty programs, you are often asked to download several apps or carry several cards with you. Not only that, existing rewards programs are fragmented and don’t offer any holistic solutions for merchants either. On top of that merchants have to carry transaction costs by third-party providers such as banks.
So far, no existing loyalty program is including a payments network. Livenpay is changing that and more. Livenpay offers a solution for merchants to accept cryptocurrencies without the risk of losing out on profits due to volatility while providing an easy to use app that can be used to pay for food and to receive rewards.
Livenpay has integrated a reward-based token economy into an existing payment and loyalty platform targeted towards restaurants – and is in consequence combining the best of two worlds.
Users can download the Livenpay app and connect it with their credit or debit cards. Whenever they go to a location where merchants accept payments with Livenpay, they can use the app to pay for their meals. Whenever users pay with Livenpay at a supported merchant, they’ll receive LVN – Livenpay tokens – as a reward, just like loyalty points. Users can then decide to either donate their tokens to a charitable cause or to keep them and spend them on their next meal.
For merchants, it’s free to sign-up to Livenpay, and they only have to pay a success-based fee when a transaction occurs as a result of the effectiveness of the Livenpay network be it as a result of incentivizing users to return to a restaurant or my marketing that business.
How does Livenpay work?
Livenpay is combining blockchain with an existing payment network to offer a seamless experience to all users. Instead of loyalty points, users receive LVN when buying in-store. LVN is an ERC-20 token and can be used for payments in-app but also to buy meals. Unlike with other loyalty programs, the total supply of LVN is capped at the amount that was initially minted: 10 billion.
A part of these tokens was sold during an ICO and are now traded on exchanges. The rest of the tokens is circulating within the Livenpay platform either in users wallets or in the pool of LVN held for rewards by the platform. For the tokens within the platform, an exchange rate is determined based on the circulating supply of LVN and the usage.
With this dual market system, it can happen that the price of LVN outside of the platform is higher than the price within due to speculation. In that case, users could use Livenpay and basically eat for free when the rewards they receive in LVN exceed the price they have to pay for the meal.
On the other hand, if the price of LVN is lower in secondary markets than within the platform, it makes sense for users to purchase LVN from exchanges and use it in-app to enjoy discounted meals.
In either scenario the use of Livenpay increases, which drives adoption and therefore the main goal.
Livenpay is already serving 500,000 consumers and more than 1000 merchants. The team is working hard on growing the network and expanding globally. We’re excited to see what they’ll deliver next.
LVN will list on June 12th 8:00 UTC with USDT trading pair on the Bitcoin.com Exchange.