Fintech firm CellPoint Mobile, which provides commerce and payment tools for airlines, has launched a Travel Innovation Hub (CTIH) to fast-track applications of blockchain technology for travel-related business services and transactions.
Chief executive Kristian Gjerding and chief technology officer Jonatan Evald Buus hope that the hub will diversify the company’s suite of solutions by forging partnerships with developers to create blockchain-supported products and services specifically tailored to the travel sector.
Tnooz caught up with Gjerding to learn why the firm wants to broaden its scope. Gjerding expects that the company could deliver a unified and secure passenger ID created from existing verified data (passports, visas, IDA, licenses, company and payment data, airline and travel records, loyalty program memberships).
He thinks it could also deliver loyalty products which would use blockchain processes to streamline and protect points and miles in airline and travel loyalty programs, and payment products that integrate blockchain authentication, including digital wallet blockchain payment processors and other services directly tied to CellPoint Mobile's existing payment solutions. Gjerding tells us:
"So many activities and transactions are interconnected—because of the data involved in transactions, interactions, communications, verification, notifications, etc.
"Payment data is connected to loyalty program data, and loyalty program data requires valid information about identities, names, addresses and contact information.
"It’s often impossible to separate the various components of mobile payments or loyalty program transactions. In fact, because they share data or are intimately linked at the point of verification and authentication."
Blockchain technology resolves many of those issues, Gjerding says.
Other solutions CellPoint Mobile is exploring directly overlap initiatives underway in the travel sector and the airline industry, which would mean fresh competition, if the company can get it done.
Though industry groups like airline association IATA are pursuing these types of solutions and launching hubs of their own, CellPoint Mobile has not specifically approached IATA about any of its blockchain initiatives.
A universal blockchain ID also requires CellPoint Mobile to negotiate with governments on a cross-border identity solution.
This is something tech company SITA is still exploring as part of its own blockchain ID initiative announced earlier this year through a partnership with ShoCard. Gjerding says:
"Ideally, one thing that the blockchain process can do is simplify the collection, management and verification of distributed data to overcome the challenge of siloed information and still ensure that passenger IDs are valid and that security is assured for all travelers."
The company is relocating its headquarters from Copenhagen to Miami. Gjerding says CellPoint Mobile has identified payments, loyalty programs, passenger IDs and security as its four primary objectives. Innovation in these areas is needed to to help the travel sector take on global giants.
"One of the biggest challenges today for travel companies and airlines is the fact that innovation is being driven by external players like Facebook, Google, PayPal and others; it’s extremely difficult, time-consuming and expensive for today’s airlines and businesses to keep up with changes that happen so quickly....
"Hosting blockchain products and services in a commerce-oriented platform positions them so that we can easily manage, edit and update them in near, real time—and so can our clients, via the platform...
"Airlines can update and integrate new products and services at the same pace as the blockchain universe evolves. All companies are looking to bring new products to market quickly, without lengthy IT projects or costly investments. That’s the goal of our integration strategy."
It will bring that message to potential partners early next week to the Money2020 event in Las Vegas, a payments and financial services conference.