In an attempt to encourage users towards using cryptocurrency, Japanese e-commerce giant Rakuten has introduced a provision to convert their loyalty points into Bitcoin(BTC), bitcoin cash and ether (ETH).
According to a recent announcement, the conversion service will be made available by Rakuten’s cryptocurrency exchange, Rakuten Wallet. Upon conversion, One Rakuten Super Coin will be equivalent to one yen or $0.0091.
The company executives, in a press conference, said that only regular Rakuten Super Points and not Limited Time Points will be eligible for exchange. Also, a minimum of 100 Super Points will be required for the conversion to take place.
They also mentioned that the service aims to reduce barriers in cryptocurrency trading and provides an easier way to access the market. To get started, users will need to have an account with Rakuten Wallet, registration for which will remain free and then convert the loyalty points to cryptocurrency using the Rakuten App.
However, there will be a limit on the number of Super Points and the times in a month, an exchange can be processed. Users with a “Diamond membership” will be able to convert 50,000 points in one transaction and 500,000 points in a month, whereas, other members will only be able to convert 30,000 points in a single transaction and 100,000 points in a month.
Rakuten Wallet, previously known as “Everybody’s Bitcoin Inc.”, is a licensed cryptocurrency exchange registered with the Kanto Local Finance Bureau under Japan’s Payment Services Act. The exchange changed its name to “Rakuten” earlier this year in March and started offering trading services in August. The e-commerce unit began accepting payments in Bitcoin in 2015 when it integrated its US website with Bitnet, a Bitcoin wallet provider.
Rakuten believes that the role of cryptocurrency-based payments in e-commerce, offline retail, and P2P payments will see significant growth in the times to come.