Couponing Using NFTs: An Efixii Disintermediation Solution

Source credit: thecouponbureau.org | Cover image by NASA, Header BG by Conny Schneider

Disintermediation is a reduction in the use of intermediaries between manufacturers and consumers. For example, Uber disintermediates taxis, Airbnb disintermediates hotels, and Amazon disintermediates shops.

Disintermediating the existing couponing clearinghouse paradigm [1] using Redeemable NFTs improves the existing process, reduces fraud, and reduces manufacturer couponing costs which, in turn, means a higher coupon discount for you, the end consumer.  

Believe it or not, the flow shown on the right shows how those paper coupons in your post box are created by a manufacturer, distributed to you, and redeemed at registered retailers.

So, if Efixii could disintermediate some of these middlemen, then Efixii would earn a fee, and you and I would get a better discount – a win-win!

Follow the money

A manufacturer wishes to expand their consumer base by offering discounted goods. To do so, they create a coupon for you to redeem at certain retailers. A simple enough transaction where a manufacturer pays a retailer for each redeemed coupon. Simple right? It should be, but (there’s always a but!) what stops a bad actor, i.e. retailer, from fraudulently claiming they sold their entire inventory of the manufacturers’ goods at a coupon-based discount? How can the manufacturer ensure there is only one unique coupon per purchase before paying a retailer?

Well, today, such fraud prevention is managed using a coupon clearinghouse. Manufacturers pay a variety of middlemen to create unique coupons on their behalf and to pay retailers pursuant to the middleman taking on the fraud risk. But, of course, manufacturers have to reduce the discount you, and I receive to pay all these middlemen. So, if Efixii could disintermediate some of these middlemen, then Efixii would earn a fee, and you and I would get a better discount – a win-win!

Introducing Efixii’s Redeemable NFTs

A manufacturer engages a coupon provider with a Rolodex of retailers and a set of consumers (postal address, email, or app-install) and supplies a set of Efixii Redeemable NFTs, which use a unique QR Code as the NFT image media. The provider delivers the NFT to the consumer’s account (by post, email, or app). 

The provider issues any retailer with an inventory of the manufacturer’s goods a unique Retailer QR Code. The consumer taps their QR Code Redeemable NFT coupon on their smartphone, taps the transfer button to open their camera, and scans the Retailer QR Code. That’s it. Coupon redeemed.

Using the Efixii Redeemable NFT smart contract, manufacturers algorithmically buy back the redeemed NFTs from retailers with USDC cryptocurrency, contemporaneously paying a USDC commission to the provider. Using Efixii to mint coupons, manufacturers deposit USDC into their Redeemable NFT coupon smart contract to meet their obligations,  ensuring all parties are paid per coupon redemption.

So, adding to our list above, Efixii now disintermediates the coupon clearinghouses.
Coupon providers, manufacturers, and retailers are encouraged to reach out to the Global Compliance Application Corp. NFT team to start their coupon disintermediation journey!

[1] https://www.thecouponbureau.org/ai8112


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