Customers will receive 15% of the value of their purchase back in BTC — however, their transaction must be completed using Cash App's debit card.
The newspaper reports that customers will receive 15% of the value of their purchase back in BTC — however, their transaction must be completed using Cash App's debit card.
To put this offer into context, spending $20 in a Shake Shack would result in a $3 Bitcoin reward.
Shake Shack told the newspaper that there appears to have been little interest in cryptocurrencies as a payment method among its customers. However, a lot of this may be linked to the technical hurdles associated with transacting in Bitcoin — not to mention the digital asset's volatility.
The experiment is going to take place between now and in the middle of March — and if successful, Shake Shack says it may prolong the rewards program or accept crypto as a payment method. The chain's chief financial officer Amrita Ahuja told the publication:
"You're always trying to place your bets on those things that truly will be meaningful and not waste resources on the ones that won't."
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All of this comes after research from Visa suggested that 57% of consumers want to earn cryptocurrencies via a rewards program — and analysts believe this could deliver some much-needed modernization to loyalty schemes.
It could also serve as a powerful tool for adoption — allowing shoppers to gain exposure to digital assets in a risk-free way, and without having to make a purchase themselves.
The concept of receiving crypto back after making a purchase isn't new, and a number of major brands have already enlisted with the Bitcoin-focused platform Lolli, including eBay.
Last year, Grubhub announced that it would allow hungry crypto enthusiasts to earn crypto rewards — with new users getting $5 in BTC after their first order, and $1 in BTC for every purchase after that.
Lolli was founded back in March 2018 — and for evidence of why crypto rewards could prove fruitful for consumers, consider this: $10 in Bitcoin three years ago would be worth over $100 today.