Convenience store loyalty programs have become a cornerstone of daily life in Taiwan, offering consumers the opportunity to earn and redeem loyalty points for a wide range of products and services. Now, a strategic partnership between Circle Internet Financial (Circle), a global fintech company, BitoGroup, Taiwan’s leading cryptocurrency market leader, and Taiwan FamilyMart, the nation’s second-largest convenience store chain, is set to revolutionize the loyalty points economy in Taiwan.
The partnership is set to deliver a new ‘Points-to-Crypto’ service through the Taiwan FamilyMart App and the BitoPro Exchange, enabling customers to convert their FamilyMart loyalty points, known as FamiPoints, into digital currencies such as USDC (USD Coin). This innovative move will not only preserve the value of loyalty points over time but also eliminate transaction fees, making cryptocurrencies more accessible to the Taiwanese market.
Empowering the Taiwanese Community
Taiwan is home to one of the world’s highest densities of convenience stores, where loyalty points play a significant role in consumer behavior. According to the Market Intelligence & Consulting Institute (MIC) in Taiwan, “Points Accumulation and Redemption” were rated as the most practical feature among four major retail app functions in their 2021 consumer behavior survey.
Additionally, a separate Mobile Payment Consumer Survey report by MIC in 2021 revealed that 87% of users engage in points accumulation, with 99% of them often utilizing points for product redemptions. This data underscores the integral role of loyalty points in the daily lives of Taiwanese consumers and the potential embedded within the loyalty points economy.
Raagulan Pathy, Vice President of Asia Pacific for Circle, said: “Circle is excited to partner with BitoGroup and Taiwan FamilyMart to champion access to digital currencies in Taiwan. With the introduction of USDC in the enhanced ‘Points-to-Crypto’ service, we aim to empower the Taiwanese community to participate in the digital economy seamlessly and support Taiwan’s stance in embracing digital fintech innovations.”
Titan Cheng, the founder and CEO of BitoGroup, emphasized the organization’s commitment to facilitating the transition from Web2 to Web3 for both businesses and the general public. Cheng stated: “The enhanced iteration of the Points-to-Crypto service on the BitoPro Exchange introduces unprecedented flexibility, versatility, and empowerment through loyalty points conversion. Through our strategic collaboration with Circle and FamilyMart, we aspire to expand the USDC ecosystem and build a robust Web3 infrastructure in Taiwan.”
Transforming Taiwan’s Loyalty Points Economy
With nearly 800,000 members and a commanding market share of close to 90% in Taiwan, BitoGroup operates an array of services, including BitoPro (a cryptocurrency exchange), BELS (an NFT empowerment platform), and O2 META (a metaverse-focused social media platform). Donghao Liu, Director of the Digital Finance Department at Taiwan FamilyMart, highlighted that this enhanced service solidifies Taiwan FamilyMart’s commitment to offering maximum convenience to its members.
Taiwan FamilyMart‘s FamiPoints have attracted over 17 million members nationwide due to their simplicity in accumulation, redemption, and conversion. Liu stated: “We are dedicated to further enhancing the value of FamiPoints for our members by continually offering more diverse and convenient avenues for loyalty point utilization. The enhanced service not only introduces a wider range of virtual currencies that FamiPoints can be exchanged for in just two simple steps but also promises to positively impact the loyalty points economy in Taiwan.”
This partnership is not the first groundbreaking collaboration between Taiwan FamilyMart and BitoGroup. Since 2014, their pioneering service allowed customers to purchase Bitcoin at convenience store locations across the nation, setting a global record for the most extensive physical network for cryptocurrency purchases. This new partnership between Circle, BitoGroup, and FamilyMart signifies a transition from physical convenience store locations to seamless online experiences and is another significant milestone in supporting access to innovative financial tools, solidifying Taiwan’s position as a leader in the digital economy.
With the introduction of the ‘Points-to-Crypto’ service, the loyalty points economy in Taiwan is poised to undergo a transformation, allowing consumers to seamlessly enter the world of digital currencies while preserving the value of their loyalty points. This partnership showcases Taiwan’s commitment to embracing innovative financial technologies and establishes it as a leading Web3 gateway in Asia.
