Loyalty programs: Blockchain technology could help streamline and verify the earn-and-redeem processes involved with the points and miles in airline and travel loyalty programs. Blockchain could make it easier for passengers to authenticate and use their hard-earned miles and points, while protecting airlines and loyalty programs from fraudulent manipulation, hacking, cybersecurity threats, theft and other forms of loyalty program fraud.
Payments: Blockchain capabilities also can be integrated into airline and travel e-commerce orchestration platforms—the same platforms that make it easy for airlines to add, remove and update payment service providers, digital wallet solutions and payment acquirers. Any process that simplifies the complexity of the always-changing mobile payments ecosystem can shorten time to market for products, speed deployment and reduce the workload on I.T. and technical staffs.
Payments Fraud: The blockchain process, which is built on collective verification, transparency and speed, removes many of the incentives and opportunities for hacking. In and of itself, blockchain could help reduce much of the payments fraud, hacking and identity theft that currently occurs with vulnerable commercial transactions.
Another argument holds that blockchain advocates assume that blockchain will result in lower costs for businesses, whether that cost is associated with identifying customer transactions, providing secure mobile payments, or enabling loyalty programs. History does not, however, provide much comfort that these lower costs will prove out.