Singapore’s largest bank, DBS, has launched its Programmable Rewards program that allows its customers to use smart contract powered vouchers. The bank has integrated the e-voucher system into its payments app, DBS Paylah!, which has 2.9 million users. The blockchain-based vouchers are compatible with Singapore’s most widely used QR code payment formats, enabling distribution across 40,000 merchant outlets.
The bank is running a promotion enabling customers to convert rewards points into eVouchers, including offering additional cash back for a limited period.
Smart contracts attach conditions to the usage of the digital tokens. For example, it might be redeemable only at certain outlets, or be valid for a limited period of time. Conventional vouchers work similarly, but the key advantage is automation. Reconciliation is far simpler because there’s a shared record of transactions, and settlement can be automated through the conventional payment system NETS. This should lower the cost of managing rewards programs.
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