RainCheck ICO Review — Part 1: Rewarding Customer Loyalty on the Blockchain

100X ICOs
100X ICOs
Sep 7, 2018 · 4 min read

What is RainCheck?

RainCheck is a blockchain project founded in late 2014, focusing on O2O, or online to offline commerce. Developed for the influence and measuring of high levels of online product research and discovery, they also work to connect findings with transactions at in-store locations. This is done at the SKU level instead of the merchant level, truly setting them apart from other competitors in the field.

The problem to be solved

Only 16 percent of shoppers do not belong to any kind of loyalty program. This means that 84 percent of shoppers have experience with loyalty programs. However, most points and rewards appear to go unused. Typically, this is due to the user never obtaining enough points to exchange them for worthwhile rewards.

Additionally, loyalty programs have problems with stockpiles of known points causing potential liabilities in their financials. Imagine if everyone cashed in at the same time. These points are effectively owed money, and the larger the company, the larger the amount owed.

Add to this the issue of “empty wallets”. There are plenty of consumers who are part of a program but aren’t participating at all. These users will typically only sign up to get a one-time reward or benefit. Financial reward systems are the highest valued benefit of loyalty programs. However:

  • Older users prefer product discounts, rebates and cash back
  • Younger users prefer actual products or personalized offers

The incredible RainCheck concept and solution

RainCheck’s platform will utilize a distributed ledger to let users earn points from any brand. Future developments in their roadmap include smart contract usage to share rewards and loyalty amongst members. This will all work through the RainCheck platform token, RAIN.

This token is based on the Stellar protocol to process micro-transactions at a lightning-fast rate. With these payments features, RainCheck can monitor points balances in real time, and ensure consumers retain the most up-to-date valuation of their rewards.

Once the features of the RAIN token are integrated into their platform, the goal is a marketplace for loyalty and rewards that works on both sides of the coin: shoppers and retail brands. Shoppers can push their payment cards to RainCheck’s wallet application, and can quickly join any program listed on their platform.

Those who receive RAIN tokens can transfer them between loyalty programs with ease, and can of course trade them on exchanges providing support to RAIN. RainCheck is compliant with KYC and AML financial regulations, provided by the features of Stellar’s blockchain.

Real world applications for RainCheck

Lets think through some real world applications

Picture a future user with two rewards credit cards, one for Airline A, one for Hotel B. They are about to make a large purchase, and are unsure which card to put the purchase on to maximize their rewards. The value of the reward points earned from the large purchase will not cross the boundary into reward receipt territory, but will get close.

However, they are discouraged knowing that Airline A and Hotel B are not connected through any loyalty partnerships, so the options are one or the other, and it can never change.

Enter RainCheck and the RAIN token. Through this, the user can sign up for loyalty programs with both services simultanously and quickly, make their purchase, and effortlessly exchange token values between the two services. Provided existing points are transferrable, the user can even move all points from one program to the other, tipping the scales towards actual reward receipt.

This is a win for the user, as they can redeem rewards without them sitting dormant in multiple accounts. This is also a win for the service provider, as they can eliminate some of the unknown liability from their balance sheets with oustanding points balances sitting in accounts bubbling under the reward threshold.

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Who is behind this new innovation in the multi-billion dollar loyalty management market? Read on for more on the team, founders, and advisors who are the cogs in the RainCheck machine!

Next Up: Meeting the RainCheck Team


More about RainCheck can be found on their official website!
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100X ICOs

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100X ICOs

Reviewing the most promising ICOs in the cryptocurrency space.

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