Emirates starts a loyalty system of clients on a blockchain

At the end of February, 2020 the Emirates airline started a blockchain loyalty system of clients, developed by Loyyal company. The parties signed the contract for three years.

Thus Emirates aims to reduce operating costs, to improve customer service quality and to reduce the financial liabilities connected with large-scale programs of loyalty. One of the most significant advantages of a blockchain is minimization of the efforts connected with approval of the separate systems. Other advantages are included by transparency and traceability, reduction of a fraud risk and optimization of the reporting.

Emirates started a blockchain loyalty system of clients, developed by Loyyal company

The Loyyal company not for the first time is engaged in similar contracts - in 2016 it helped to develop the Dubai Points platform which is designed to stimulate tourism in the UAE. In August, 2019 Loyyal received financing from Asian investors whom Unblock Ventures, subsidiary company of the major Japanese company on LINE Corporation message exchange were among. Besides, investors of Loyyal are Indeed and Glassdoor Recruit. According to Crunchbase, to an August round of financing the company attracted not less than $5 million. The amounts of investments, received during a final round, are not disclosed.

The solution Loyyal is based on corporate Hyperledger Fabric blockchain. One more company, Amex, also implements Hyperledger Fabric, but in their case the blockchain should provide the detailed targeting within the loyalty program. Traditionally clients earn points on the basis of the total costs, but using a blockchain of AmEx can estimate expenses on a certain type of goods by which to clients and remuneration is charged.

Other airlines working with programs of remunerations on the basis of a blockchain include Singapore Airlines, Cathay Pacific and AirAsia.^[1]

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