Who doesn’t have a small pile of unused airline loyalty points in a frequent flyer account? If you fly occasionally for leisure, chances are you haven’t earned enough points to do anything meaningful with them, such as buying an actual flight ticket.
Plus, there are the laborious redemption processes, some with convoluted restrictions.
The answer could be Blockchain– the technology behind bitcoin and other cryptocurrencies which operates as a “distributed ledger”. With blockchain, airlines will be able to interact instantaneously with their partners and enable passengers to do something useful with those points.
What blockchain does that current systems cannot was recently highlighted in a “Blockchain in Aviation” white paper published in August by the International Air Transport Association, which said that blockchain has the capability to “tokenise” frequent flyer miles.
In July, Singapore Airlines became the world’s first carrier to launch a “blockchain-based airline loyalty digital wallet capability” called KrisPay to “help unlock the value of KrisFlyer miles to enable everyday spending at retail partners”.