its because of interchangeability, that value of the AA points and SPay points will converge over time. Without knowing the details of the conversion agreement, and based on informed speculation on how it works:
1. Spay and AA should have an agreement that they allow interchange at 1:1 between users
2. But there must be a value attach to it, if not, lets say everyone on AA converts their point to Spay, then samsung ended up paying the bill for the loyalty program of Air Asia
3. It will probably be on a "nett basis". Means if nett transfer is from AA to SPay, then AA pays SPay for the nett points
4. If Spay get 1cents per point from AA, then they can only afford to cost their rewards to 1 cent, else they will be subsidizing AA customers
5. No matter which way is more popular (we tend to think Spay), nett effect is monetary value will converge to 1 cent = 1 point (the lowest valuation)
Samsung Pay Unofficial Discussion Thread V2
Jan 9 2020, 09:28 AM
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