Joining the growing number of brands that have embraced the world of crypto and blockchain is Pepsi.  Wait...no, that's not true.

Pepsi has been stirring up confusion when it launched Pepcoin last month. Many people thought that Pepsi now has a cryptocurrency of its own when the reality is that Pepcoin is nothing but a rewards program to incentivize U.S. consumers to buy their products often.

How it Works

The rewards program that started on Sept. 12 gives a 10 percent cash back on purchases of snacks and drinks. Those who want to participate in the program must create a Pepcoin account first, and upon their initial purchase of a single product will get rewarded with a nickel.  

However, to keep getting cash on subsequent purchases, the process becomes a bit complicated.  

Food items purchased should be a combination of a snack and drink, meaning two products are required to earn cashback. If only one item is bought, no rewards will be given.  

Members of the program should also scan the alphanumeric codes found under the bottle caps and front panel of the snack's packaging within 48 hours.

Apart from that, there's also a maximum of 3 pairs of codes (3 pairs of products) that can be scanned per day. And there's an "account maintenance fee" as well wherein a Pepcoin account will be deducted $0.25 after 120 days of no new purchases.

No Actual Crypto Involved

The rewards program of Pepsi doesn't involve actual cryptocurrencies but it does involve real cash. When a Pepcoin account reaches a $2 balance, the amount is transferred to the linked PayPal or Venmo account. 

Leveraging Crypto

Tacking the word "coin" to Pepsi's rewards program is almost a surefire way to entice and catch the attention of those involved in the crypto space. The popularity of cryptocurrencies is one way for Pepsi to funnel some of the market's buzz to their brand. But, again, it's just a reward for those who munch their snacks regularly.

Participating Brands

The participating brands of Pepcoin involve Aquafina, Cheetos, Chester's Fries, Mountain Dew, Doritos, Fritos, Funyuns, Lay's, Lipton, Mug Root Beer, Munchies, Pepsi, Ruffles, Sierra Mist, Smartfood, and Sun Chips.

Pepsi Bottles of Pepsi are pictured at a grocery store in Pasadena, California, July 11, 2017. Photo: REUTERS/Mario Anzuoni