Digital wallets are usually used in Bank and Business Startups industries, which rely on the effects of digitalization today. However, today even airlines use digital wallets based on blockchain.
Singapore Airlines released the world’s first blockchain-based digital wallet for their customer loyalty program. This technology was developed in collaboration with KPMG Digital Village and Microsoft. This is the first time the world’s airlines use blockchain technology.
KrisPay is a miles-based digital wallet that allows members to redeem KrisFlyer miles into KrisPay miles for everyday shopping needs at merchant partners across the region. When you download the app, you’ll be the first to know about the latest KrisPay promotions and new partner merchants.
The KrisPay application allows KrisFlyer members to spend their miles like money at 18 merchants in Singapore, at a rate of 1 mile = 0.66 cents (minimum 15 miles or 10 cents, is required).
As an early stage, KrisPay miles will be available in 18 merchants covering a wide range of categories, ranging from beauty services, food and beverages, gasoline and retail. Selected merchants will sometimes give you a discount.
But, most of the media reported “what” of KrisPay, but very few talk about “why”. For that, we try to review the reasons for using KrisPay.
image: Tech in Asia
Benefits can be obtained
Basically virtual currency can run using Blockchain technology. Arguably Blockchain is a technology that became the basis of the creation of cryptocurrency. Blockchain is an online global database-one that can be used anywhere in the world connected to the internet.
Unlike other databases that are usually owned by certain institutions such as banks or governments, Blockchain is not owned by anyone so it makes it more transparent because it can be accessed by anyone. but on this occasion, Singapore Airlines has taken advantage of the technology.
Benefits of Blockchain Technology, which is KrisPay….
Two parties may conduct unattended or intermediary exchanges from third parties, greatly reducing or even eliminating counterparty risk. By eliminating third-party intermediaries and overhead costs to exchange assets, KrisPay has the potential to reduce transaction costs.
One of the advantages of using other KrisPay is the cost is cheaper than using conventional banking services.
Secure. Any transaction that occurs in KrisPay can be validated on the spot. Existing data can be read by multiple databases.
In addition, the application of digital signatures can also be done to confirm the identity of someone or a user who has an account on the KrisPay. The signature can also be set for permissions to provide data and access history.
Their users are in control of all their information and transactions. The KrisPay data is complete, consistent, timely, accurate, and widely available. Due to decentralized networks, KrisPay has no central point of failure and is better able to withstand any malicious attacks.
image: Channel News Asia
So, is KrisPay required in the airlines?
Singapore Airlines CEO, Mr. Goh Choon Phong, revealed “KrisPay is the latest way for members of KrisFlyer to access their miles digitally anytime, and with just one touch,”
Currently, KrisPay can be downloaded through Apple and Google Play Store. Once downloaded, members can redeem their KrisFlyer miles into KrisPay miles using the instant top-up feature available within the app.
“By creating a miles-based digital wallet that integrates the usefulness of miles into their everyday lives, members of KrisFlyer again have another way to easily use their miles on day-to-day transactions.” said Mr. Gooh continued.
Ultimately, KrisPay can serve financial transactions anytime and anywhere without any time and space restrictions. This is very efficient for businesses that have partners in other parts of the world.
This application will allow members to choose, using at least 15 KrisPay miles to pay for their purchases at partner merchants, either partially or in full.
Some of the merchants are Cedele, TWG Tea, Shangri-La Hotel (Origin Grill and Nami Restaurant & Bar), LEGO, and others. Singapore Airlines plans to add this merchant, so members can enjoy the promotions available within the app, as well as more feature apps will be available in the future.
Is KrisPay secure? What are the security measures used in KrisPay to protect my account?
In addition to a solution, including strong private or permissioned blockchain and encryption, there are still cyber security concerns that need to be addressed before the general public entrusts their personal data to the KrisPay solution.
As reported by Singapore Airlines that KrisPay uses 2-Factor Authentication (2FA) as a security measure when first logged in on the new device. You will be sent One-Time-Password (OTP) to your registered mobile or email number.
Make sure that your phone number and / or email in your KrisFlyer account are updated correctly. Once you’ve successfully logged into your KrisPay account, the next log-in will not ask for 2FA again unless the login is done on a new mobile device.
Source: Singapore Airlines (singaporeair.com), milelion, CCN, Unlock BC (unlock-bc.com), duniafintech, marketeers