Lolli Raises $8 Million to Grow Bitcoin Rewards Program

Lolli has raised $8 million to expand its bitcoin/cashback rewards program.

Co-founder and CEO Alex Adelman told TechCrunch Thursday (Dec. 14) that the new financing — bringing its total funding to $28 million — will be used to bring the rewards program to partners such as exchanges, banks, neobanks, browsers and payment companies. 

“We have historically raised the amount needed to win,” Adelman said. “We don’t take more money than we need to support our next phase of growth, and are very focused on operating efficiently and proving out our business model.”

Launched in 2018, Lolli’s reward program gives users bitcoin or cashback when they shop online or in person at restaurants and stores. The company last year introduced Card Boosts, which lets users add rewards to debit and credit cards when they shop. 

Adelman described the product as a “tremendous growth-driver” that let users earn more than five times the rewards on daily purchases such as coffee, gas or groceries. As of October of this year, he added, Lolli’s active shoppers have risen by over 35% year-over-year. 

“Lolli is on track to expand the number of stores where users can shop to over 100,000 by 2025,” the CEO told TechCrunch.

PYMNTS last week examined a flurry of recent announcements by companies and brands tapping into loyalty programs that reinforce customer affinity for goods and services, and also help offset the cost to consumers of paying for those things. 

For example, Cracker Barrel has said its loyalty program is gaining momentum, with each dollar spent helping customers accumulate points that can be redeemed for menu items. 

The eatery, like other quick-service restaurants (QSRs), are among the businesses fine-tuning their efforts as PYMNTS Intelligence data shows that 51% of shoppers have used loyalty programs, and 34% of diners at full-service restaurants have done so.

And in late November last month, American Express and Amazon teamed to let cash-back card holders now spend their Reward Dollars on Amazon. The deal, PYMNTS noted, brings commerce a bit closer to offering what might be considered rewards “ubiquity.”

Outside the confines of consumer payments to merchants, Comdata recently debuted a rewards program with its Comdata Connect Card that — funded by bank accounts or credit cards — allows users to earn points and rewards.

“As data collection and analysis gets ever-more granular — and real time — merchants and issuers are able to leverage receipt-level information to personalize and target their offerings,” that report said.

PYMNTS Intelligence has found that 65% of card users shop with brands or merchants where they are members of loyalty or rewards programs. Upwards of 40% of customers said they had used a card-linked offer program within the past 12 months.