In a move that likely spells change for the entire airline industry, S7 Airlines of Russia has instituted a Blockchain-based ticketing program, allowing for nearly immediate payment of funds to agents.
No more TPS
Legacy ticketing systems employ what is called termination payment service (TPS), which typically is used to reduce the risk of non-payment. The new system utilizes Blockchain to make the process transparent and secure, and to withdraw funds and pay the ticketing agent immediately. The entire process has been reduced from 14 days to 23 seconds because of the security of the Blockchain, and the company believes they’re forging a path for the future. Deputy CEO Pavel Voronin said:
“We have made the world’s first flight ticket purchase through an open api (application programming interface) blockchain to a bank. I’m sure that the system will soon be used by most companies globally.”
This is not the first innovation by S7, Russia’s largest domestic airline. The company previously inked deals with Alfa-Bank using smart contracts for issuing a letter of credit, and for completing it.