For decades, the ink of a passport stamp has been a physical marker of journeys around the globe. It’s a throwback, a tiny piece of proof that a traveler has visited somewhere ‘new.’ As the world is getting more digitally focused, and physical passport stamps may soon be a thing of the past, American Express is capitalizing on that nostalgia with a modern approach: blockchain travel stamps. Appropriately called Amex Passport, this feature will allow U.S. cardholders to collect digital mementos for their overseas journeys, marking a major step for a traditional financial institution to enter Web3.
Bringing On-Chain Memories to the Amex App
The latest Amex Passport feature is simply a layer added onto the existing Amex mobile application. When a cardholder in the US makes a purchase using their American Express card when traveling abroad, a digital “stamp” is minted in the background. These stamps are actually ERC-721 tokens, which is the same technology used in many non-fungible tokens (NFTs), however American Express has deliberately decided not to integrate the term “NFT” into their description – instead opting for the more relatable “stamp” terminology, so they can center their messaging around a keepsake campaign rather than the speculative nature of cryptocurrency. As Colin Marlowe, VP of emerging partnerships at Amex Digital Labs, said, the intention is to provide a greater sense of permanence, just like the ink from a traditional stamp.
The Technology Behind the Scenes
To facilitate this entire process, American Express is utilizing the Base blockchain, which Coinbase built as a layer-2 solution on Ethereum. This was a clever decision, as it had both a lower transaction fee and a considerably faster time to transact than on the Ethereum main chain, and of course, it had the same security and immutability afforded by blockchain. The clever thing is that the wallet and minting process is completely abstracted away from the user. Cardholders will not ever need to understand what a blockchain is or how to use a crypto wallet. On the back end, a secure custodial wallet is created for each user and managed by AMEX. Minting will happen automatically, invisibly while a user makes a purchase, and creates a seamless, frictionless experience.
Focus on Commemoration, Not Commerce
In contrast to many initial efforts involving NFTs, these digital stamps are not to be used as a speculative asset. They are not transferable and have no cash value. This design decision avoids some volatility associated with the crypto market and regulatory concerns. The stamps are a digital memento for cardholders to document their travels and feel further connected to their travels and journeys. American Express is even going back two years on stamps for cardholders, and automatically adding a digital stamp for trips taken over the previous two years to get them started on collecting stamps. Emphasis by American Express on value, or sentimental value of stamps rather than any monetary value, further enhances its appeal.
Why American Express is Making This Move
This project is not simply a fun technology project; this is a deliberate attempt to increase customer loyalty and engagement in a competitive marketplace. As we noted from a recent Amex survey, many travelers miss the traditions of passport stamps, while there is a strong demand from respondents to allow travelers more digital ways to document their trips. In this way, American Express is deepening its emotional engagement with its members and using the experience not only to soliate an emotional need but also to turn an international transaction into a little badge of honor. Members will feel a sense of achievement, which encourages future trip-planning.
A Glimpse into the Future of Loyalty
The observation that Amex Passport is a signal to a future of companies utilizing blockchain, not necessarily in relation to financial trading, but rather to create custom, developed, unique, and emotional experiences for consumers. By dematerializing the technology, American Express is a prime example of how a large company can embed Web3 constructs into a mainstay product. Perhaps this signifies a positive, compelling outcome for rebranded legacy brands similarly to rebranded applications on blockchain-based structures – viewed through the lens of utility and/or employment of a utility. It no longer focuses on what someone can sell, but rather on what someone can collect and remember.
