American Express Eyes Blockchain for Customer Rewards System

New patent filings from American Express suggest the credit card provider is looking at blockchain as part of a consumer rewards system.

AccessTimeIconOct 23, 2017 at 10:00 a.m. UTC
Updated Sep 13, 2021 at 7:04 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

The travel and merchant arm of American Express may be weighing the use of blockchain within a personalized customer rewards system, public filings show.

A new patent application published last week by the U.S. Patent and Trademark Office details a concept for offering customer-specific types of rewards (including points, a virtual currency or specific items tied to a product). The filing indicates the financial giant would make these offers by compiling personalized data about the customer, such as their historic spending patterns.

The application cites the tech as one resource for storing and updating information among a number of possible approaches, detailing:

"The blockchain structure may include a distributed database that maintains a growing list of data records. The blockchain may provide enhanced security because each block may hold individual transactions and the results of any blockchain executables. Each block may contain a timestamp and a link to a previous block."

That the firm would move to seek intellectual property claims around uses of the tech is perhaps unsurprising, given the interest around it by some of the credit card provider's competitors. American Express is currently a member of the Hyperledger blockchain consortium and, when it joined in January, the company suggested that it would look to blockchain as a way to potentially rework its current services.

"We're excited to join Hyperledger, as we're looking to take full advantage of blockchain to deliver new and innovative products for our customers and partners, while transforming existing business processes and applications," Amex chief information officer Marc Gordon said at the time.

Amex card image via Nadalina/Shutterstock

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.