AMERICAN EXPRESS FILES PATENT ON BLOCKCHAIN-BASED PERSONALIZED CUSTOMER REWARDS SYSTEM

Last updated: June 20, 2025, 00:57 | Written by: Samson Mow

Imagine a world where your credit card rewards are not just points accumulating dust, but dynamic assets tailored specifically to your spending habits and preferences.That future might be closer than you think. Financial services giant American Express (Amex) has filed a patent for a blockchain -based proof-of-payment system, according to filing published by the U.S. Patent and Trademark Office (USPTO)Financial services giant American Express (Amex) is exploring the potential of blockchain technology to revolutionize its customer loyalty programs.Recent filings with the U.S. Global financial services giant American Express applies for blockchain-based proof of payment system. The third-largest payment processor in the USA by card transaction volume, American Express s new Proof of Payment (PoP) system could see the nation host more than $400 billion in blockchain payments annually.Patent and Trademark Office (USPTO) reveal that American Express Travel Related Services Co., Inc., the travel and merchant unit of Amex, has filed a patent for a blockchain-based personalized customer rewards system.This innovative system aims to provide customer-specific rewards, including points, digital currency, or even specific items linked directly to a product they frequently purchase.This marks a significant step towards creating more engaging and rewarding experiences for American Express cardholders, leveraging the security and transparency of blockchain to enhance loyalty and customer retention.

This move signifies a growing trend of established financial institutions embracing blockchain technology. The new announcement from Amex follows and answers some questions about a patent filed last year by an American Express subsidiary for a personalized customer reward system usingBeyond just personalized rewards, Amex is also exploring blockchain for proof-of-payment systems and receipt image capture. New post (American Express Files Patent on Blockchain-Based Personalized Customer Rewards System) has been published on CryptoWorld. New post (American Express FilesThe potential applications of blockchain in the financial sector are vast, and American Express appears to be positioning itself at the forefront of this technological revolution.

The Vision: Personalized Rewards Powered by Blockchain

The core of American Express's patent lies in its vision for a highly personalized and dynamic rewards system.Instead of offering generic rewards that may not appeal to all customers, the blockchain-based system aims to analyze individual spending patterns and preferences to offer rewards that are directly relevant and desirable.This represents a significant shift from traditional loyalty programs, which often lack the flexibility and personalization needed to truly engage customers.

How Does it Work?

The patent outlines a system where customer-specific types of rewards are offered, taking into account their purchase history, location, and other relevant factors. American Express Travel Related Services Co, Inc, the travel and merchant unit of financial services firm American Express (Amex), has filed a patent for a personalized customer reward system using Blockchain technology.These rewards can take various forms, including:

Points: Traditional reward points that can be redeemed for travel, merchandise, or other benefits.
Digital Currency: Cryptocurrency or stablecoins that can be used for payments or investments.
Specific Items: Offers for particular products or services that the customer is likely to be interested in, based on their past purchases.

The use of blockchain ensures that these rewards are securely tracked and managed, providing transparency and preventing fraud. Why use blockchain for rewards programs. Customer loyalty and rewards programs are transactional in nature, with large numbers of participants. These are typical characteristics of blockchain applications, which is why the benefits of embedding decentralised principles in the operations of loyalty and rewards programs are so strong. Here's whatEach transaction and reward redemption is recorded on the blockchain, creating an immutable audit trail.

What are the benefits of a blockchain-based reward system?

The implementation of blockchain technology to manage customer loyalty programs has several advantages:

Enhanced Security: Blockchain's inherent security features protect customer data and prevent fraudulent activities.
Increased Transparency: All transactions are recorded on the blockchain, providing a clear and auditable record of reward earnings and redemptions.
Improved Personalization: The system can analyze customer data to offer highly targeted and relevant rewards.
Greater Flexibility: Blockchain allows for the creation of new and innovative reward structures, such as digital currency rewards.

Blockchain for Proof-of-Payment: Enhancing Security and Efficiency

Beyond personalized rewards, American Express is also exploring the use of blockchain technology for proof-of-payment systems. As these global giants embrace XRP payments and integrate CTF rewards, the potential for mass adoption skyrockets. With a fixed supply of CTF tokens and increasing demand from institutional and retail users, the CryptoTradingFund system can become a central player in blockchain-based finance.This system, as outlined in another patent filing, aims to provide a secure and reliable way to verify payments made using American Express cards.

The Role of Proof-of-Payment

The proof-of-payment system involves creating records linked to a public key and associated with the merchant ID. AMEX files patent on Blockchain-based personalized customer rewards system offering customer-specific types of rewards that include points, a digital currency, or specific items linked to a product.This generates a proof-of-payment payload, including the ID and payment amount. New patent filings from American Express suggest the credit card provider is looking at blockchain as part of a consumer rewards system. The travel and merchant arm of AmericanThis payload can then be used to verify the transaction and prevent fraud.

This system could revolutionize the way payments are processed and verified, offering numerous benefits:

Reduced Fraud: By providing a tamper-proof record of each transaction, blockchain can help to prevent fraudulent activity.
Faster Dispute Resolution: The immutable record of transactions on the blockchain can simplify the process of resolving disputes between merchants and customers.
Increased Efficiency: Automating the payment verification process can reduce the time and cost associated with traditional payment systems.

Capturing Receipts with Blockchain: Streamlining Expense Management

In addition to personalized rewards and proof-of-payment systems, American Express has also filed a patent for a blockchain-based system to capture and transmit the image of a receipt.This system aims to streamline expense management for cardholders by automatically capturing and storing receipts in a secure and accessible manner.

How it Works

The system would leverage mobile technology and blockchain to capture an image of the receipt at the point of sale.This image, along with other relevant transaction data, would then be securely stored on the blockchain.Cardholders could then access these receipts through a mobile app or web portal, making it easy to track expenses and manage their finances.

This system offers several potential benefits:

Simplified Expense Tracking: Automatically capturing and storing receipts eliminates the need for cardholders to manually track their expenses.
Reduced Paper Clutter: By digitizing receipts, the system can help to reduce paper clutter and promote a more sustainable lifestyle.
Improved Accuracy: The system can automatically extract relevant information from receipts, such as the date, amount, and merchant, reducing the risk of errors.

American Express and Blockchain: A Growing Trend in Financial Services

American Express's foray into blockchain technology is part of a broader trend of financial institutions exploring the potential of this disruptive technology.Blockchain offers a number of advantages over traditional systems, including enhanced security, increased transparency, and improved efficiency. In October last year, American Express Travel Related Services Co, Inc, the travel and merchant unit of AmEx, filed a patent for a personalized customer reward system usingAs the technology matures, it is likely to play an increasingly important role in the financial services industry.

Why are financial institutions interested in blockchain?

Financial institutions are drawn to blockchain for a multitude of compelling reasons, primarily centered around its capacity to enhance security, transparency, and efficiency:

Enhanced Security: Blockchain's decentralized and cryptographic nature makes it exceptionally resistant to hacking and fraud. American Express Travel Related Services Co, Inc, the travel and merchant unit of financial services firm American Express (Amex), has filed a patent for a personalized customer rewardThis is a critical advantage for financial institutions handling sensitive data and large sums of money.
Increased Transparency: Every transaction on a blockchain is recorded in a public and immutable ledger. A American Express Travel Related Services Co, Inc, a unidade de viagens e comerciantes da empresa de servi os financeiros American Express (Amex), fez o requerimento de uma patente para um sistema personalizado de recompensa de clientes usando a tecnologia Blockchain. Sob o sistema, a empresa oferecer tipos de recompensas espec ficos doThis transparency can help to reduce fraud, improve auditability, and build trust with customers.
Improved Efficiency: Blockchain can automate many manual processes, such as payment processing and reconciliation. Financial services giant American Express (Amex) has filed a patent for a blockchain -based system to capture and transmit the image of a receipt, according to a U.S. Patent and Trademark OfficeThis can significantly reduce costs and improve efficiency.
New Revenue Streams: Blockchain enables the creation of new financial products and services, such as digital currencies and decentralized lending platforms.

Examples of Blockchain Use in Finance

Several financial institutions are already experimenting with blockchain technology in various areas, including:

Cross-Border Payments: Using blockchain to facilitate faster and cheaper cross-border payments.
Supply Chain Finance: Tracking goods and payments throughout the supply chain.
Identity Management: Securely verifying the identity of customers and preventing fraud.
Trade Finance: Streamlining the process of financing international trade.

Challenges and Opportunities

While the potential benefits of blockchain in financial services are significant, there are also challenges to overcome.These challenges include regulatory uncertainty, scalability issues, and the need for industry-wide standards.However, as the technology matures and these challenges are addressed, blockchain is likely to play an increasingly important role in the future of finance.

Addressing the Challenges

Overcoming the hurdles to widespread blockchain adoption requires a collaborative effort from industry stakeholders, regulators, and technology providers. บริษัทด้านการท่องเที่ยวแห่งหนึ่งที่เป็นบริษัทลูกของอเมริกันเอ๊กซ์เพรส นามว่า American Express Travel Related Services Co, IncSome key strategies include:

Regulatory Clarity: Establishing clear and consistent regulatory frameworks for blockchain-based financial services.
Scalability Solutions: Developing blockchain solutions that can handle the high transaction volumes required by the financial industry.
Industry Standards: Creating common standards for blockchain protocols and data formats.
Education and Awareness: Educating consumers and businesses about the benefits and risks of blockchain technology.

Seizing the Opportunities

By proactively addressing these challenges, financial institutions can unlock the immense potential of blockchain to create more secure, efficient, and customer-centric financial services. To that end, Amex has filed a patent with the US Patent and Trademark Office (USPTO) for a blockchain-based proof-of-payment that will provide records linked to a public key and associated with the merchant ID to generate a proof-of-payment payload including the ID and payment amount.The opportunities are vast, ranging from new revenue streams to improved operational efficiency and enhanced customer experiences.

The Future of Loyalty Programs: Personalized, Blockchain-Powered, and Engaging

American Express's exploration of blockchain technology for its customer rewards system signals a potential shift in how loyalty programs are structured and implemented.The future of loyalty programs is likely to be personalized, blockchain-powered, and highly engaging.

Key Takeaways

Personalization is Key: Customers expect rewards that are relevant to their individual needs and preferences.
Blockchain Provides Security and Transparency: Blockchain ensures that rewards are securely tracked and managed, providing transparency and preventing fraud.
Engagement is Crucial: Loyalty programs need to be engaging and rewarding to keep customers coming back.

Actionable Advice for Businesses

If you're a business owner looking to improve your customer loyalty program, consider the following:

Gather Customer Data: Collect data on your customers' spending habits and preferences.
Personalize Your Rewards: Offer rewards that are tailored to individual customer needs.
Explore Blockchain Technology: Consider using blockchain to enhance the security, transparency, and efficiency of your loyalty program.
Make it Engaging: Use gamification and other techniques to make your loyalty program more engaging.

Conclusion: American Express Leading the Way in Blockchain Innovation

American Express's patent filings related to blockchain-based personalized customer rewards systems, proof-of-payment, and receipt capture highlight the company's commitment to innovation and its belief in the potential of blockchain technology.By embracing blockchain, American Express aims to create more secure, efficient, and customer-centric financial services. American Express Travel Related Services Co, Inc, unidad de viajes y mercader as de la firma de servicios financieros American Express (Amex), ha presentado una patente para un sistema de recompensa de cliente personalizado usando tecnolog a Blockchain.While challenges remain, the opportunities are vast, and American Express appears poised to be a leader in the blockchain revolution within the financial services industry. Posted by u/ctmediagroup - 1 vote and no commentsThe potential for increased customer loyalty, reduced fraud, and streamlined operations makes blockchain a compelling technology for American Express and other financial institutions looking to stay ahead in a rapidly evolving landscape.The move by American Express could potentially usher in a new era of personalized and secure reward programs, benefiting both consumers and businesses alike.By continuously innovating and adapting to new technologies, American Express can continue to enhance its services and strengthen its position as a leader in the financial industry.