> For the complete documentation index, see [llms.txt](https://paywithcrypto-1.gitbook.io/paywithcrypto/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://paywithcrypto-1.gitbook.io/paywithcrypto/17.-xcp-spending-rewards.md).

# 17. XCP Spending Rewards

**XCP** Rewards is PayWithCrypto’s signature gamified loyalty engine, built to transform everyday crypto spending into a self-sustaining reward cycle for both users and merchants — and to keep them engaged long-term.

#### &#x20;<mark style="color:blue;">**Core Idea**</mark>

Every crypto transaction — from a coffee purchase to an NFT swap, from paying a bill to donating to charity — generates **XCP** Rewards Points, which unlock real-world rewards, premium perks, and deeper ecosystem benefits. The more you spend, stake, and engage, the higher your tier and the greater your perks.

### &#x20;<mark style="color:blue;">**How It Works**</mark>

**Earn Points**

Every action in the PayWithCrypto Super App — Scan-to-Pay at a merchant, swap tokens, stake **XCP**, refer a friend, or complete AR Monster Hunts — instantly earns points. Redeem Flexibly

**Redeem Flexibly**

Points can be redeemed for:

* Merchant vouchers
* Real discounts at participating stores
* NFT collectibles
* Gas rebates for on-chain transactions
* Premium access to PayWithCryptopartner perks

### &#x20;<mark style="color:blue;">**Benefits for Merchants**</mark>

**XCP** Rewards Point isn’t just for users — it’s designed to boost merchants, too:

·         More repeat visits: Customers want to scan & spend to level up.

·         Dynamic rewards: Merchants issue NFTs, vouchers, or sponsor missions.

·         Customer data loop: Get insights (with user consent) on repeat customers.

·         Instant, on-chain: Rewards drop to wallets automatically — no clunky backend needed.

### &#x20;<mark style="color:blue;">**Revenue Sharing**</mark>

#### How the Revenue Engine Works

&#x20;<mark style="color:$info;">**The Transaction Fee ( 3%)**</mark>

* Every crypto-to-fiat transaction inside the PayWithCrypto Super App includes a small conversion fee, typically  3%, which is lower than traditional card and SWIFT fees.
* This fee covers:
  * Instant stablecoin-to-fiat settlement
  * AML/KYC compliance checks
  * On-chain recording costs
  * Continuous **XCP** buybacks to sustain the token value &#x20;

&#x20;<mark style="color:$info;">**Automatic On-Chain Splits**</mark>

Instead of being absorbed entirely by the platform, the fee is transparently shared with all ecosystem players who bring in merchants, maintain liquidity, or ensure local regulatory compliance.<br>

<figure><img src="/files/DvbpLg0ot2ZIkN7SVyE2" alt=""><figcaption></figcaption></figure>

### &#x20;<mark style="color:blue;">Sustainability & Utility</mark>

·         All transactions burn fees back into $**XCP** buybacks → sustainable deflation.

·         Merchants & users stake $**XCP** → creates natural holding pressure.

·         Points can be cashed out into real discounts, not locked in a walled garden.

·         DAO governance can adjust tiers, perks, and seasonal bonuses.

### &#x20;<mark style="color:blue;">Fully On-Chain</mark>

All points, tiers, and perks are:

·         Transparent on-chain.

·         Linked to non-custodial wallets.

·         Auditable, tradeable where allowed.

·         Interoperable: NFTs or points can be used across brands.

&#x20;