American Express has taken a step into the world of digital collectibles and NFTs with its newest dividend for credit card customers.
Just after her recent performance where SZA gathered a collection of NFTs of her favorite moment, American Express is offering cardholders the chance to purchase 14 unique digital images from that performance. Those NFTs (non-fungible tokens) will be stored on the Ethereum blockchain and can be traded and resold over time just as other collectibles such as baseball cards and physical arts.
America Express hopes that NFTs will significantly appeal to customers and enable them to view digital collectibles as desirable perks in a short space of time. The collection with the five-time Grammy nominee, SZA is a part of a strategic plan of exploring ways to utilize Amex platform in offering a variety of digital collectibles as dividends and offers.
Luke Gebb, the company’s head of digital labs noted that Amex will participate in the future of NFT offerings. He added that there are currently around 750,000 unique users on Ethereum, the blockchain that houses the majority of NFTs.
“Clearly that’s a tech-savvy population at the moment, but it’s going more and more mainstream by the minute,” Gebb said. “We’re looking at a world, and planning for a world, in which it gets more mainstream, but this is early in the adoption cycle” He added.
NFTs are cryptographic assets on blockchain with unique identification codes and metadata that distinguish them from each other. Each NFT includes details like the date and price of the initial sale, as well as any subsequent transaction. Also, an original creator can build a “smart contract” into the NFT, ensuring that they are entitled to a cut in any future sale.
Some recent examples of NFT sales include the rock band Kings of Leon releasing their newest album as an NFT. The album eventually generated more than $2 million in sales. Beeple’s digital painting that sold for a whopping $69 million at Christie’s auction and a collectible video of a dunk by LeBron James, that sold for $208,000.
In the Amex example, the Collection, is a one-of-a-kind collection comprising of 14 SZA-favored moments, each set at $100 each. From Friday, 10 of those NFTs will be available for purchases while another four NFTs were going on sale on Monday to all Amex cardholders.
Vice President of global entertainment partnership and experiences at Amnex, Brandy Sanders opined that the offer is a strategic plot to position American Express as a kind of lifestyle brand.
She added that the NFTs will be hosted and sold at Fanaplay, an online marketplace for NFTs deliberately chosen due to its easy-to-use platform.
“We wanted to create something where if you are not super comfortable in the NFT space just yet, but you are a SZA fan, we have something for you,” she said.