Key Takeaways
- Circle is launching a Points-to-Crypto service in collaboration with Taiwan's FamilyMart and BitoGroup, allowing FamiPoints to be converted to USDC.
- The new service aims to preserve the value of loyalty points and enable easy access to cryptocurrencies.
- The partnership comes at a time when Taiwan is preparing to introduce a new cryptocurrency law at the end of 2023.
Stablecoin issuer Circle is venturing into a new partnership with Taiwan's major convenience store chain, FamilyMart, and local crypto exchange BitoGroup.
The collaboration aims to introduce a "Points-to-Crypto" service to FamilyMart's mobile application.
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The new service will let FamilyMart customers convert their loyalty points, known as FamiPoints, into Circle's USD Coin (USDC). Users will have the option to transfer the converted USDC to their BitoPro wallets, all without any transaction fees.
In this announcement on October 26th, Circle highlighted the advantages of this model, stating:
Converting FamiPoints into USDC prevents a loss of value in loyalty points over time and incurs zero transaction fees, democratizing access to cryptocurrencies.
FamilyMart's loyalty program is very popular in Taiwan. 2021 Market Intelligence & Consulting Institute (MIC) revealed that 87% of Taiwanese consumers actively collect loyalty points, and a staggering 99% use them to redeem products.
FamilyMart's FamiPoints program boasts over 17 million members nationwide, while BitoGroup has approximately 800,000 users on its platform.
The timing of this partnership aligns well with broader developments in Taiwan's cryptocurrency landscape. The country's Financial Supervisory Commission announced key regulatory rules for the crypto market in September and is expecting to release the first draft of the new cryptocurrency law by the end of November 2023.
Circle's partnership with FamilyMart and BitoGroup signifies an innovative step in the utility of loyalty points and stablecoins, offering a seamless and cost-effective way for consumers to enter the cryptocurrency space. Given the immense popularity of loyalty programs in Taiwan, the initiative could serve as a template for similar projects globally.
