3. PROBLEM

Existing reward point service platforms have the following issues.

| Little reward pool size

Little rewards result in lower participation rate from the users.

| Lack of mutual connections between platforms

A number of companies have independently developed reward point platforms. However, these individual platforms are not connected to each other and therefore make it difficult for users to manage their reward points.

| Diversity in reward points

Every company has different ways to save points, ratio of reward points, limitations and expiration time etc which is difficult for users to be fully aware of. In order for users to efficiently use their reward points, they are required to learn different policies for different platforms and companies.

| Limitations on the ownership of reward points

Where users are limited to certain amount of points due to the operating policy, it may also mean that the users do not have full ownership of these reward points, making reward points limited as a form of currency.

| Problems from policies

Reward points have limitations in its use ratio, number of times it can be used, locations where it is used etc and such policies do not provide flexible use environment giving negative impressions on the relevant platform. In addition, the amount of unused reward points are increasing due to companies reducing the duration of expiration time to minimize expenditure from the company’s perspective.