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Fluidity Money Introduces Crypto Cashback Program with Request Finance
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Fluidity Money Introduces Crypto Cashback Program with Request Finance

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Fluidity Money will reward customers who pay in crypto and offers cashback to merchants who accept crypto payments. The rewards are paid in stablecoins, and Fluidity Money plans to expand the rewards program to include non-fungible tokens (NFTs) and other loyalty programs.

Fluidity Money, a blockchain-based decentralized finance (DeFi) protocol, has introduced a cashback program in partnership with Request Finance. The program rewards customers who pay in cryptocurrency and offers cashback to merchants who accept crypto payments.

The cashback program is a part of Fluidity Money’s “spend-to-earn” initiative, which aims to create a blockchain incentive layer by rewarding people for using their crypto through a new yield-generating mechanism. The program encourages the adoption of crypto payments by allowing anyone to earn stablecoins for spending crypto.

Request Finance offers a suite of financial apps helping businesses manage nearly $290 million in cryptocurrency invoices, payroll, and expenses and is already widely used by hundreds of Web3 businesses, including AAVE, The Sandbox, and Maker.

How the Cashback Program Works

The Fluidity Web app allows users to obtain “Fluid Assets,” which are wrapped stablecoins offered by Fluidity Money. These tokens are acquired by depositing regular stablecoins, such as USDC and USDT, into the app and exchanging them for an equivalent amount of Fluid Assets via a smart contract.

Each time users execute a payment in the app, the sender and recipient earn stablecoins; the app then distributes stablecoins into their wallets after each transaction. Cashback rewards can range from a few pennies to hundreds of dollars per transaction, depending on the volume of the payments.

For example, if a Web3 firm uses Request Finance to pay an invoice using a Fluidity-wrapped stablecoin, both parties will earn cashback rewards. The more people use Fluidity Money’s wrapped stablecoins, the greater the cashback payouts.

Expansion of Rewards

Fluidity Money plans to expand the rewards program to other loyalty programs, including the possibility of disbursing non-fungible tokens (NFTs) in the future. By implementing this feature, payment apps using cryptocurrency, such as Request Finance, could provide incentives such as access to token-gated experiences, digital collectibles, event tickets, and more.

Vijay Garg, Founder of MapleBlock Capital, shared his thoughts on the effectiveness of similar programs. “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.”

Shahmeer Chaudhry, CEO at Fluidity Money, added, “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.” 

Competing with Other Cashback Programs

Fluidity Money provides a way of financing rewards that pay out in stablecoins and does not impose high fees on merchants or consumers. Most other cashback programs are tied to credit cards that typically finance loyalty reward programs through high interchange fees passed on to consumers and high-interest rates ranging from 15% to 27%.

Fluidity Money’s approach intends to offer a more sustainable and predictable way of financing rewards. The yield generated through lending the deposited stablecoins to other DeFi protocols, such as Compound, makes the cashback rewards available. 

80% of the yield generated is used to finance the cashback rewards, ensuring that rewards are sustainable and predictable.

Fluidity Money’s approach offers another way of incentivizing value transfer, and the more people use the service, the more rewards are generated, which in turn, incentivizes more people to use the platform.

The partnership between Fluidity Money and Request Finance to launch a cashback program could have significant implications for crypto payments because it incentivizes using crypto by offering rewards. Fluidity Money and Request Finance are working toward creating a unique way of incentivizing value transfer, which could accelerate the growth and mainstream adoption of Web3 technologies.

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