Nubank Launches Nucoin Loyalty Program For 70M Customers
Nubank, one of Brazil’s most prominent digital banks, recently introduced a customer loyalty program that utilizes its proprietary token called Nucoin. According to Portal do Bitcoin, a local news outlet, Nucoin wants to release 100 billion units of Nucoin as part of an airdrop program for its loyal Nubank customers.
Although Nucoin will function similarly to a points system, holders cannot transfer them to external wallets outside Nubank’s system.
Nubank Users Cannot Transfer Nucoin Outside Bank App
Layer-2 scaling solution, Polygon developed Nucoin in 2022. According to its white paper, 80% of the 100 billion Nucoins produced will go to the customers. This will comprise Nubank’s users and other enterprises that may opt to participate in the initiative in the coming years.
Users will conduct Nucoin transactions through the Nubank app, similar to buying and selling cryptocurrencies. In May 2022, Nubank authorized the trading of Bitcoin and Ethereum.
However, there is no secondary market for the bank’s Nucoin. Also, users cannot transfer the units to their crypto wallets. Last October, Polygon and Nubank introduced the token via a pilot run with 2,000 users.
Now, the crypto bank is extending the loyalty initiative to all its users in Brazil, which is about 70 million. Per the initiative, customers can freeze their Nucoin or exchange the token for cash or other benefits later.
According to Nubank, customers will have four ways to earn coins: receiving airdrop, customer engagement, cashback, and raffle tickets. The digital bank, which has Softbank and Warren Buffett support, reported strong customer demand in its fourth-quarter earnings announcement last month.
Nubank Releases Q4 2022 Report
According to reports, Nubank’s gross earnings in Q4 2022 rose by 137% to $578.3 million. Despite the downturn in the global banking industry, the Brazilian lender has remained immune, as consumers in its primary Latin American market are still drawn to Nubank’s main products, including personal loans and credit cards.
In the fourth quarter that ended on 31 December, Nubank reported gaining 4.2 million customers. In addition, throughout 2022, the company added 20.7 million, bringing the total number of customers globally to 74.6 million.
David Vélez, the CEO of the Brazilian bank, stated that “despite last year’s macroeconomic challenges,” Nubank exceeded every essential measurement, including maintaining rapid growth and expanding its market share in various markets and products.
Meanwhile, Nubank has previously stated that it plans to introduce additional cryptocurrencies, apart from Bitcoin and Ethereum, to broaden its customers’ range of trading alternatives.
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