Popular Bitcoin (BTC) rewards app Lolli has teamed up with Alibaba, a Chinese E-Commerce giant with over $50 billion of revenue per year. Now United States customers will be able to earn some Bitcoin (BTC) for every purchase on Alibaba. Specifically, Lolli users on Alibaba will receive 5% of the purchase price back in Bitcoin (BTC).
Lolli is similar to card reward programs that give cash back, except it gives users Bitcoin (BTC), which makes it the first of its kind. Lolli is able to do this because e-commerce websites pay Lolli a percentage for the service of getting people to come to their websites, and then Lolli splits that percentage with users. Lolli has already teamed up with over 500 retailers, including big names like Walmart, Macy’s, and GAP. Notably, Lolli is only available online at this point and not in physical locations, although technically a user could order online and pick up an item in the store at some retailers.
This news is actually fairly significant since Alibaba is possibly the most popular venue for importing goods into the United States from China. Numerous businesses depend on Alibaba since businesses can import goods in bulk from China via Alibaba for much lower prices than the same goods produced in the United States. This gives businesses the profit margins they need to survive.
So, already Alibaba was a lucrative venue for United States businesses, but now it just got even better with 5% Bitcoin (BTC) back for every purchase, which will actually amount to a lot of Bitcoin (BTC) considering the volume of Alibaba. It is possible that this rewards program could actually exert some upward pressure on the Bitcoin (BTC) market, although that depends on if Alibaba users HODL or not.
Finally, this Alibaba and Lolli partnership is coming at a good time, since it helps alleviate some of the pressure from tariffs that have been implemented during the current trade war.