Abstract
Loyalty programs are marketing strategies implemented by the service provider to establish a lasting relationship with customers. The service provider offers loyalty points, rewards, and other benefits to the customers while the customers will trade some private information to receive more offers that are relevant. With company data breaches on the rise, customers are becoming increasingly wary of sharing personal data within the loyalty program network. The increase in privacy concern causes either the customers refusing to enroll or avoiding using their membership privileges. In this paper, we propose a privacy-preserving loyalty program solution to give anonymity and protection of private information from misuse by third parties. To increase customers' confidence and merchants' trust, our protocol ensures that the manipulation of the point is transparent (i.e., can be verified) and data privacy can be protected.