Network owner deploys the contract, and has to power to onboard new shop owner onto the network. Shop owner is able to issue loyalty points only for his own shop and also confirm the redemption of points at his own shop. Customers receive loyalty points issued by shop owners, can transfer the points to another customer, and can redeem the points at the shop. Customers do not need to be onboarded for financial inclusivity(?).
Why use blockchain? Fair eco-system of transferrable loyalty point. True ownership => not restricted to network host. No expiration. Transparent => allow even competing companies to be on the same network. Easy link to payment.