KrisFlyer members could soon use air miles for every day shopping

SINGAPORE — Members of the Singapore Airlines’ (SIA) frequent-flyer programme could soon utilise a new mobile app that will allow them to use their air miles for retail purchases here.

The new KrisFlyer digital wallet, which is expected to be rolled out in about six months’ time, will allow members to use “’digital KrisFlyer miles’ for point-of-sale transactions at participating retail merchants” said the national carrier in a press statement on Monday (Feb 5).

The digital wallet will see SIA tap into blockchain technology for its loyalty programme.

SIA, together with the KPMG Digital Village and Microsoft, has developed its own privatised blockchain, where only merchants or partners who have been onboarded will be in this network.

Blockchain functions as an online record-keeping system or digital ledger maintained by a random group of peers rather than any central agency or authority. While best known for underpinning bitcoin and other alternative currencies, it also holds promise for changing how transactions are handled in many industries.

“Innovation has been a key contributor to the success of Singapore Airlines since day one and we are very excited about this world-first initiative, which will bring even more benefits to members of our KrisFlyer programme,” said SIA chief executive officer Goh Choon Phong.

He added: “This groundbreaking development in which we will be using block-chain technology to ‘digitalise’ 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.”

KrisFlyer members can earn miles when they travel on the national carrier and SilkAir, as well as when they select Scoot’s Plus Perks bundle. They can also earn miles when travelling on 30 other partner airlines.

These KrisFlyer miles can now only be used for seat redemptions and upgrades on SIA, SilkAir, vouchers on Scoot, as well as purchases on KrisShop.com. But with the new app, the KrisFlyer miles can be transferred to the digital wallet.

A SIA spokesperson told TODAY that this is the world’s first block-chain based digital wallet for an airline loyalty programme.

“They simply need to transfer a preferred amount of their actual KrisFlyer miles to the KrisFlyer digital wallet which can be used immediately at participating retail merchants,” said the spokesperson.

The digital miles could then be used to pay for petrol and groceries, among others.

Asked about the participating outlets in Singapore, the spokesperson said SIA is in the midst of discussing with various partners and details will be announced in due course.

Overseas markets are also on the SIA’s radar “in the subsequent phases”. WITH AGENCIES