The largest banking in Singapore, DBS, has launched its programmable award program that allows its customers to use smart contract vouchers. The bank has integrated the E-Voucher system into its payment application, DBS Paylah!, Which has 2.9 million users. Good based on blockchain are compatible with the most used QR code payment formats in Singapore, allowing distribution on 40,000 merchant points of sale.
The bank generates a promotion allowing customers to convert reward points to vehicles, in particular by offering an additional money back for a limited period.
Intelligent contracts attach the conditions to the use of digital tokens. For example, it can be exchangeable only in some sockets or be valid for a limited period. Conventional good works in the same way, but the key advantage is automation. Reconciliation is much simpler because there is a shared registration of transactions, and the payment can be automated via conventional payment system networks. This should reduce the cost of managing reward programs.
“By integrating our banking capacities into consumers and institutional contracts with smart contracts and blockchain technology, we have created a transformer platform to launch and quickly set up the programs of good digital,” said Han Kwee Juan, head of the group’s institutional bank at DBS. “The extended scope of this platform, connecting millions of consumers with a large network of merchants across Singapore, establishes a powerful ecosystem for powerful and scalable digital interactions.”
In addition to marketing initiatives, the bank explores the deployment of the system for employee awards and government programs. This solution alignments with existing Digital Currency initiatives of Singapore.
Linked silver roots
Singapore’s monetary authority has promoted the idea of Money Bound Money (PBM) for years, DBS first participating in 2022 as part of Project Orchid. With PBM, the money itself is not programmable, but has a digital wrapper. When the good is exchanged, the packaging is deleted, releasing the funds to the recipient.
The offer of programmable awards is part of DBS Token Services, the Bank’s tokenization initiative which uses its authorized blockchain.
For years, there has been an important promise in using the blockchain for the awards. Some programs continue to work behind the scenes, while others have failed to take off. An example is Bakkt, founded by the owner of the New York Ice Stock Exchange. He made a significant investment in the acquisition of a large award software company and created an application of Blockchain propulsion awards targeting consumers, but abandoned it due to the lack of traction. The big difference with DBS is that its Evoucher program is now part of an existing popular application with significant distribution.
