Singapore Airlines to Develop Blockchain Miles Wallet for Frequent Flyers

So far, we haven’t seen too many use cases of digital currencies in the air transportation industry. This is about to change, given the fact that Singapore Airlines (SIA) is planning to launch a blockchain-based loyalty project for frequent flyers.

With this in mind, the airline recently announced that it is working on several modifications to its KrisFlyer programme, thus adding blockchain technology to the digital wallet available to customer mobile devices.

The scheme, which will likely roll out in around six months, will also include the development of a mobile wallet app that will connect users to their points, which are to be gained by purchasing flights and other services from Singapore Airlines. Not only this, but the firm has also mentioned that the app will include a feature that allows users to use their KrisFlyer miles for POS transactions at several retail merchants, especially in airports.

Additionally, SIA plans to expand retail partnerships, and grant frequent flyers even more ways to spend their points, apart from getting discounts on future flights, or class upgrades. This may encourage more customers to join the loyalty program, depending on how lucrative it becomes.

This solution was first tested however, as a proof of concept exercise, by the KPMG Digital Village, in partnership with Microsoft.

In a recent press statement, the CEO of Singapore Airlines has mentioned that: "We are very excited about this world-first initiative, which will bring even more benefits to members of our KrisFlyer programme (…) This ground-breaking development in which we will be using blockchain technology to 'digitalize' KrisFlyer miles is a demonstration of the investment we are making to significantly enhance the digital side of our business for the benefit of our customers."

Once the project is launched, SIA will likely become the first airline to explore blockchain technology in a manner that improves frequent flyer loyalty programs.

So far, several other companies in the airline industry have started blockchain-related pilot programs. For instance, Air France is testing DLT in order to better keep track of its supply chain.