Singaporean Proptech startup FundPlaces and Malaysian property developer Hatten Land have announced the start of their joint venture which will create Southeast Asia’s first hospitality blockchain platform.
Named StayCay, the platform has the potential to integrate over 3,400 hotel rooms and 5,000 retail outlets in Melaka, Malaysia. This platform will leverage on Hatten Land’s position as a developer and offer digital tokens to tourists and shoppers via blockchain technology developed by the FundPlaces.
StayCay will issue two different types of tokens, one which can be used to purchase hotel packages from Hatten Land and its parent company, Hatten Group. The other will be used as a reward token for hotel guests and shoppers which may be used across the Hatten Group’s retail stores, food and beverage outlets, and hospitality and wellness venues.
The venture will have Hatten Land take an 85 percent stake while FundPlaces will obtain 15 percent.
The aim for this venture is to boost brand loyalty and, in the future, expand to include other third-party hotels and retail merchants in Malaysia and the rest of Southeast Asia.
Slated to go live in December this year, the rewards program will be made available on the web and on a mobile app.
The Benefits and Risks
Using blockchain in this way has the potential to help customers keep track of their purchase and rewards across the wide array of properties that the Hatten group operates. It also allows property developers to collect revenues upfront, even before clients use them.
Blockchain makes transactions much easier overall, and thanks to its secure digital ledger keeping a unique and updated record, fake or duplicated transactions cannot occur.
However, keeping this information safe and protected will be very important. The company will also need to address the regulations in effect for using crypto tokens across different regions.
Looking at the bigger picture, blockchain is still a very new technology. It holds great potential for businesses and it is thanks to innovators and risk takers like FundPlaces and Hatten that we have progressed so much over the years and will continue to progress in the years to come. Investors and businesses will be looking closely at how the StayCay blockchain system works out before following their example. We don’t know how far this technology can go, but it opens the doors to something better and brighter.