Shopping is not exactly an economic activity. Sure, you come home with a bag full of products you need or love, but at the end of the day, it’s still just a debit entry in your financial records, right?
While product manufacturers make huge profits through their customers, buyers are not highly rewarded for their loyalty. But that is about to change!
Shop-to-win platforms are trying to reinvent the shopping experience by merging blockchain technology with retail shopping. These apps reward consumers for their daily spending, allowing them to earn crypto on every purchase. Sounds interesting? Let’s take a deeper look.
How does buy to win work?
While different apps have different versions of the buy-to-win model, the basic philosophy remains the same: reward customers with cryptocurrency for their purchases. The more you buy, the more cryptocurrencies you earn.
There are several buy to win apps available today. Some of the most popular include StormX, Social Good, and ShopNext. All three platforms reward you in their native cryptocurrencies for transactions made within their trading network.
They all have more than 600 merchants in their respective networks, including some big names in fashion, electronics, home appliances, and other verticals. Social Good has over 1,800 such merchants.
Every purchase you make will earn you crypto rewards. Rewards will differ from platform to platform and will depend on the merchant and the purchase amount. Some platforms also provide memberships that further amplify the rewards on each purchase. For example, with StormX, you can earn between 0.5% and 85% in crypto cashback, depending on your membership level.
You can then transfer these tokens to your crypto wallet and exchange them for fiat currency or other crypto tokens.
You can also stake your reward to earn more tokens
Social Good and StormX also allow you to stake your rewards to earn even more crypto. According to a CoinDesk article, you can stake SG, Social Good’s native token, and earn up to 15% APY as a reward for staking. On the other hand, you can earn an additional 7.5% to 50% when staking STMX, the native StormX token. These rewards will be sent to your StormX account every week.
A budding market
According to a CoinDesk report from May 2022, there are 5 billion mobile users worldwide. About 2 percent of these mobile users own crypto in one form or another. Additionally, 55 percent of shoppers expect to be rewarded with refunds or other benefits. This brings the potential user base of the buy-to-win model to 55 million people worldwide.
However, this is without taking into account the growth of the crypto industry or the increase in the number of mobile users. CoinDesk estimates that the crypto industry will grow 10-fold in the next two years, bringing the potential user base for S2E platforms to 550 million by the end of 2023.
Disclaimer: Cryptocurrencies are unregulated virtual assets, not legal tender and subject to market risks.
Note: This is an associated post.
First published: IST