Every new system that involves money, will attract people not so much interested in using the system but more interested in abusing it.

I am not too sure merchants will be happy with this system. People are more likely to sign up for loyalty programs, even if it is only for a one time visit/reward. There is no profit for the merchant in that.

Another thing is the idea behind having a loyalty program in place. You want customers to return. If I, as a merchant, reward people with 10 points per visit and offer a free cup of coffee for 50 points. I am hoping for multiple visits per customer. If they don't return, ah well, the points are lost, no big thing.

However when people start to trade points, the points that were lost are now cashed in by an already regular customer. So now I have to supply a free coffee for 50 points without customer visiting my store at least 5 times. This is going to cost me money, as a merchant.

Great for customers, not so much for merchants.