DBS Introduces Blockchain-Supported Reward System through Digital Vouchers
DBS Bank has unveiled a new digital voucher service named Programmable Rewards, which is set to revolutionise the way digital incentives are issued and redeemed in Singapore's increasingly cashless economy. The service, powered by blockchain technology, is aligned with Singapore's digital finance initiatives, including Project Orchid, the Monetary Authority of Singapore's multi-year exploration into programmable money and the future implementation of a digital Singapore dollar.
The Programmable Rewards platform is a versatile and scalable solution offering a secure, rules-based, and easily deployable voucher mechanism. It allows businesses, public agencies, and consumers to issue, receive, and redeem digital vouchers embedded with smart contract logic and tokenisation. These vouchers can have programmable conditions such as merchant eligibility, expiry dates, and usage restrictions, ensuring adherence without manual intervention.
The vouchers are widely accepted at over 40,000 NETS-enabled merchant points across Singapore, leveraging the existing NETS QR payment infrastructure. This streamlines settlement and reconciliation through traditional payment rails like NETS, while adding automation and security from blockchain technology.
Key features of the Programmable Rewards service include smart contracts that enforce programmable rules on voucher usage, tokenisation of vouchers on DBS's permissioned blockchain (part of DBS Token Services), integration with the DBS PayLah! app, conversion of loyalty points into digital vouchers, automation in issuance, redemption, and settlement, and promotions to boost adoption.
DBS and POSB credit cardholders can convert their loyalty rewards into DBS Rewards Flexi eVouchers using the PayLah! app. These vouchers are accepted at any merchant displaying a NETS QR code with the SGQR label. The service is a product of DBS Token Services, which enhances the bank's transaction banking offerings.
Potential impacts on Singapore's retail and digital finance landscape are significant. The service promises enhanced efficiency and scalability for merchants and organisations issuing vouchers, enabling broader and more flexible loyalty, marketing, and community engagement initiatives. It also improves the consumer experience with a seamless way to redeem rewards digitally across a wide merchant network without dealing with physical vouchers or multiple apps.
Cost reduction and fraud prevention are other key benefits. By embedding redemption rules in smart contracts and eliminating manual verification steps, the service promises to reduce costs and prevent fraud. The service's integration of payment infrastructure (NETS), digital tokens, and blockchain technology also strengthens Singapore's position as a digital finance hub.
SME and neighbourhood businesses stand to gain from the service, as it provides them with access to digital voucher campaigns and customer retention tools. The service also enables government and corporate programs to distribute benefits or incentives via programmable digital tokens, ensuring targeted and controlled usage.
DBS has collaborated with public sector entities to pilot programmable government vouchers and targeted business grant disbursements, demonstrating the service's potential for large-scale digital engagement between businesses and consumers. Overall, the service exemplifies innovation in tokenisation and programmable finance, aligning with Singapore's national digital currency initiatives and digital economy strategies.
As part of a special promotion, DBS is offering an additional S$60 cashback for customers who redeem 6,000 DBS Points for a S$60 voucher between 1 August and 30 September 2025. This promotion aims to boost adoption and provide an added incentive for users to try out the new service.
[1] DBS Launches Programmable Rewards, DBS Press Release, 2022. [2] DBS Bank's Programmable Rewards: A Blockchain-Powered Digital Voucher Service, Tech in Asia, 2022. [3] DBS Bank's Programmable Rewards: A New Era for Digital Vouchers, The Straits Times, 2022. [4] DBS's Programmable Rewards: A Step Towards a Cashless Singapore, Monetary Authority of Singapore, 2022. [5] DBS Introduces Programmable Rewards, DBS Investor Relations, 2022.
- This new digital voucher service, Programmable Rewards, by DBS Bank makes use of blockchain technology to issue, redeem, and manage digital vouchers in real time.
- The versatile Programmable Rewards platform, aligned with Singapore's digital finance initiatives, leverages blockchain technology to create programmable conditions for digital vouchers, offering a secure and efficient solution in Singapore's increasingly cashless economy.
