US-based payment technology corporation Mastercard has announced its collaboration with Singapore Airlines (SIA), aiming to improve the travel experience across Southeast Asia. As per the information detailed in the press release, Mastercard entered a five-year strategic alliance with SIA, with the latter establishing Mastercard as the preferred partner for its upcoming co-branded card programs across Southeast Asia, including Cambodia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam.

Southeast Asia’s travel landscape Considering that Southeast Asia has experienced sustained travel recovery since the COVID-19 pandemic, the collaboration came as a response to the current environment. For example, in Singapore, consumers assigned over 37% of their discretionary spend to travel by the end of 2023, with, as per Mastercard’s data, individuals across Southeast Asia being set to allocate more spending to these types of items over essentials in 2024, with travel being a priority. Currently, airlines intend to develop brand loyalty through targeted programs by investing in co-branded card programs that include more than travel capabilities. Enabling cardholders to receive miles via everyday purchases on credit and debit cards and redeeming them across a variety of brands allows airlines to make their membership a necessity in consumers’ lives.

This supports the retaining and expansion of existing member relationships while also acquiring additional ones. Mastercard – Singapore Airlines collaboration objectives Through this strategic partnership, the two companies intend to cater to emerging trends and consumer requirements. SIA, with assistance from Mastercard, is set to introduce co-branded credit and debit card programs across Southeast Asia and offer a range of benefits to cardholders.

These include earning KrisFlyer miles from everyday spending, as well as accelerated mile accrual and redemption opportunities that can be added to their KrisFlyer status upgrades. Additionally, the alliance is set to see the extension of Mastercard’s Priceless platform to SIA’s KrisFlyer members, such as special offers, global promotions, and access to a suite of experiences that include dining, travel, sports, music, and entertainment, among others. Furthermore, according to SIA’s officials, the partnership merges Mastercard Priceless and the KrisFlyer Experiences programs, providing members with access to a wider range of experiences across Southeast Asia, as well as mile earning and burn capabilities in their everyday spending. The move follows SIA’s commitment to improving KrisFlyer’s value, while also delivering members enhanced on-ground and in-flight benefits and experiences.

By joining forces, Mastercard and SIA allow card issuers in Southeast Asia to be part of a strategic alliance in the travel and entertainment industries and provide these features to their customers. Representatives from Mastercard underlined that its Priceless program aligns with the requirements of SIA’s international audiences, offering them the ability to receive exclusive experiences. As part of their collaboration, Mastercard is set to deliver its suite of data and services capabilities, including its Data Analytics & Consulting, Test & Learn platform, the user verification software NuDetect, and the Mastercard Payment Gateway Services (MPGS) payment processing platform. At the time of the announcement, Mastercard and SIA already launched the first product under their collaboration in Thailand. The UOB KrisFlyer World and UOB KrisFlyer World Elite Credit Cards provide increased miles rates and travel benefits, including complimentary limousine services and access to airport lounges, among others.

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