Loyalty programs offering points for redeeming gifts or special discounts are popular campaigns used by retailers to boost spending. The snag is that consumers often have points or stamps across many different retailers. Local startup KeyPoints Exchange (KPEX) has developed and launched a cross-program point redemption platform that consolidates loyalty points of various merchants. The aim is to phase in a regional point redemption platform for Hong Kong, Macao and the Greater Bay Area.
As online platforms advance by leaps and bounds, competition between e-commerce companies and brands is intensifying. In a bid to maximize brand exposure and retain loyal customers, the race is on for retail names to develop and launch loyalty programs that can ensure customer stickiness and devotion. Kim Mak, Co-founder and CEO of KeyPoints Exchange, said he has noted the separate and unconnected operation approach of point-saving platforms years before. “It’s hard to save enough points, that’s the first issue; and many people give up saving points altogether because it’s too time-consuming. Ultimately, these loyalty points become useless.”
A cross-point platform to clear market obstacle
Targeting the pain points in this particular market, Mak and his friends put together capital in 2020 to found KeyPoints Exchange, a platform that merges cross-membership points. Their venture earned support from the Cyberport Incubation Program and won an award in a competition. “We have Unionpay International as strategic parther, our goal is to explore the Guangdong-Hong Kong- Macao Greater Bay Area market in recent years.”
Redeem loyalty points across the “one-hour living circle”
KPEX’s flexible cross-program platform enables consumers to combine points on a mobile app. Exchange rates of different point plans are calculated automatically and point units are unified. Consumers can then use them to redeem products or services at designated partner stores. According to Mak, there are currently more than 200 Hong Kong merchants on the platform, along with over 650 international and local supermarkets, convenience stores or restaurants in the Greater Bay Area. The service covers more than 90,000 online and offline stores and is available at 640,000 POS payment devices.
Mak hopes the cross-point redemption platform will smooth the path to gradually remove boundaries for point use in the Greater Bay Area in the future. His goal is to form a two-way circulation market. “I believe this will not only help international brands tap the huge Greater Bay Area and the Mainland markets, but will also be conducive to enhancing brand awareness, expanding the customer base and widening business territory.”
Positive competition from industry peers very welcome
KPEX was founded at the onset of the COVID pandemic. As there is now a clearer picture for future development of the situation, Mak expects the Mainland tourists will be encouraged to visit Hong Kong to shop, which will drive local retail consumption and increase KPEX’s utilization rate and registered users. Moreover, with the new generation of blockchain-based Web 3.0 network now in place, he will also seek reference from concepts like move-to-earn and spend-toearn to provide exclusive member NFTs and enhance user experience.
At the moment, not many products on the market provide cross-point platforms similar to KPEX. Mak said frankly if competitors appear in the market in the future, KPEX hopes to join forces with other strong players to expand the crosspoint platform market and drive sustainable growth.
