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Our new Internet-savvy society is demanding change in how business is being conducted virtually everywhere. The old bureaucracy of the 20th century is no longer acceptable. Consumers are frustrated by the friction involved in the finance world and businesses are tired of paying fees everywhere including the multi-billion dollar rewards and loyalty industry. This cumbersome and costly system of payment is not keeping pace with modern society and business wants and needs. Today’s consumers are reported to be financially cautious, seeking both value and authenticity from the companies they do business with. They appreciate a system that promotes equality and choice, using technological and new creative means. Today’s millennials expect to spend $10 trillion during their lifetimes, so systems must adapt to their needs. Loyalty and rewards programs have come a long way since American Airlines and Marriott first introduced such initiatives in the 1980s.
The loyalty census 2015 conducted by Colloquy shows that Americans are still signing up for loyalty programs in droves. Loyalty memberships jumped from 25.5% to 3.3 billion from 2012-2014.However,morethanhalf of members do not actively participate; much less end up actually becoming loyal, engaged and enthusiastic program members. A typical US household belongs to 19 to 29 different loyalty programs but actively uses only 5-12 of them. Moreover, active membership rates of participation have been on a decline since 2010. According to the U.S. Department of Transportation’s Bureau of Transportation Statistics, year after year, air travel increased by 5.5% from 2015 to 2016. A Colloquy survey found that a little more than half of Americans – 55% – have taken a flight for business or leisure purposes in the past two years. And three-fourths of respondents, said theirmostrecentflightwaswithinthe past six months. However, 60 percent of frequent traveler miles issued today are not earned but purchased instead.
Points accumulating in loyalty programs globally are considered by some as real currencies with increasing value that has attracted the attention of criminals ,according to Barry Kirk, vice president of Loyalty Solutions for Maritz Motivation Solutions. In the US alone, 3.3 billion loyalty program memberships have stored points and miles worth an estimated $48 billion, according to the Gartner Group. We believe the forthcoming ICO of Ovato represents a unique opportunity to acquire a stake in a token that will fuel a product aimed squarely at an acute problem in mainstream commerce, globally allowing participants to save money using a digital currency and at the same time providing a platform. allowing participants globally to save money using the Ovato Smart Coin. Furthermore, still in its infancy, the digital currency’s market potential for mass adoption is not “a question of if, butratheraquestionofwhen.”,thus enabling participants to save money using the Ovato Smart Coin on a global scale.
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