Loyalty points have become a staple in the travel industry, with hundreds of billions of dollars’ worth of points being earned by travelers every year. However, a significant portion of these points go unredeemed, estimated to be over $100 billion annually. This is largely due to the fragmented and inefficient systems in place, making it difficult for consumers to track, combine, and spend their points.
The Problem of Captive Rewards
Traditional loyalty programs operate in silos, with each brand having its own system, making it challenging for consumers to use their points across different brands and regions. This has led to a situation where loyalty points are often trapped in individual accounts, with limited redemption options. According to Hatem Kemali, co-founder of digital rewards platform Resal, “points are trapped in broken, fragmented systems. Hard to track. Hard to combine. Hard to spend.”
Consumers’ expectations have changed, and they now want to use loyalty points like money, not just for discounts. This shift in consumer behavior has created an opportunity for companies like Webus International, an XRP-focused treasury firm, to develop innovative solutions to unlock the value of loyalty points.
Tokenizing Loyalty Points with XRP
Webus International has announced plans to launch a tokenized travel rewards exchange based on the XRP stablecoin system. This platform will enable users to exchange and redeem points across multiple brands in real-time, with value settled via XRP-based stablecoin payments. By integrating XRP stablecoin settlement, Webus aims to bring cost-effective and transparent real-time value conversion to the travel rewards ecosystem.
The use of XRP Ledger (XRPL) will play a central role in this initiative, allowing for instant conversion between brands and regions without currency risk or manual reconciliation. Ripple’s RLUSD stablecoin will act as a bridge asset with XRP, enabling Webus to route settlements through RippleNet’s existing corridors. This will move value in seconds, rather than days, reducing costs and improving liquidity for consumers.
The Benefits of Ripple’s Technology
Ripple’s centralized settlement stack is designed to handle multi-currency congestion, making it an ideal solution for loyalty conversion. The network allows institutions to move funds instantly without pre-funded accounts and use XRP as a bridge between local currencies. The stablecoin integration also falls in line with Ripple’s broader push into tokenizing real-world assets.
The success of Webus’ platform could demonstrate how stablecoins can solve real-world problems outside of trading desks. By powering the exchange of value behind everyday transactions, XRP and RLUSD could turn loyalty points into a universal travel microcurrency. For more information, visit https://cryptoslate.com/how-xrp-treasury-company-aims-to-unlock-100b-through-loyalty-points/
