Fluidity Money, a “spend-to-earn” decentralized finance (DeFi) protocol, has announced the launch of a cashback program with Request Finance, an enterprise crypto payments app.
In a press release shared with Cryptowisser, Fluidity Money revealed that the cashback program lets businesses reward customers who pay in crypto. Furthermore, merchants also stand to earn cashback rewards when they accept crypto payments.
Whenever a payment is made in the app, the sender and the recipient stand to earn stablecoins. The rewards will be randomly distributed into their wallets after each payment, the team added.
Depending on the volume of payments being made throughout the entire program, cashback rewards can range from a few cents to as many as hundreds of dollars per transaction.
Fluidity Money added that the cashback rewards are currently paid out in stablecoins. However, the project intends to expand its offering to other loyalty programs, which could see other types of rewards like non-fungible tokens (NFTs) being disbursed in the future.
Depending on the value of the NFTs, Fluidity Money could allow crypto payment apps like Request Finance to offer rewards ranging from tickets to token-gated experiences, merchant credits like air miles, digital collectibles, and more.
While commenting on this latest development, Shahmeer Chaudhry, CEO at Fluidity Money, said
“Request Finance helps thousands of enterprise teams and DAOs use stablecoins easily. We wanted to work with them to introduce this cashback program as a fun way of rewarding people for using stablecoins for payments.”
Vijay Garg, Founder at MapleBlock Capital, added that;
“Cashback and loyalty reward programs have proven incredibly effective at driving the adoption of Web2 digital payments. Google Pay’s 2019 #StampwaliDiwali campaign in India and the 2022 Huat Pals campaign in Singapore are great examples of this. We believe that a similar strategy can help to drive the adoption of crypto payments.”
While cashbacks are not new in the cryptocurrency space, Fluidity Money’s program differs from the current ones available. many of these cashback programs are often tied to credit cards, which typically finance loyalty reward programs through high interchange fees which merchants pass on to consumers, and extortionate overdraft interest rates ranging from about 15% to 27%. In addition, the seemingly attractive crypto cashback rates advertised on these cards are often due to the fact that the rewards are paid out in highly volatile tokens.
Fluidity Money’s cashback program provides crypto payment apps like Request Finance, a novel way of financing rewards that pay out in stablecoins and does not impose high fees on merchants, or egregious interest rates on consumers.
Fluidity Money is creating the blockchain incentive layer by rewarding people for using their crypto through a novel yield-generating mechanism. Fluid Assets are pegged 1:1 to traditional stablecoins and can be embedded into any platform, protocol or system, enabling all forms of value transfer to be incentivized.
Meanwhile, Request Finance is a suite of financial apps that helps businesses manage nearly $290 million in cryptocurrency invoices, payroll, and expenses that boasts more than 81,000 community members across its social media platforms.