Recent developments indicate that Webus International has formed a strategic and innovative partnership with Air China. This collaboration aims to place the Wetour travel service in front of an immense audience of over 60 million members of PhoenixMiles, the airline’s loyalty program. This initiative may also introduce XRP-based payment solutions, which could revolutionize international travel payments. However, actual implementation awaits regulatory approval and further business advancements.
Connecting with a Massive Member Base
Through this strategic agreement, Wetour plans to primarily concentrate on premium services, most notably luxury chauffeur and airport transportation. The PhoenixMiles members will have the exceptional opportunity to access Wetour’s platform, which is gearing up to feature XRP, as well as Ripple’s RLUSD stablecoin, as payment alternatives.
Recently, Webus has aimed to diversify its cryptocurrency offerings. Back in June, they submitted a proposal to the SEC for a $300 million treasury reserve, signaling intentions to harness the capabilities of the XRP Ledger for enhanced cross-border transactions.
The Practicality of XRP & Its Challenges
Advocates claim the XRPL facilitates transactions remarkably quickly—settling in merely three to five seconds with transaction fees that are under a cent. These characteristics make it an attractive option for travel companies and loyalty schemes looking to implement digital tokens for vouchers, reward systems, and expedited payments.
Nonetheless, while support for XRP payments is encouraging, it does not guarantee that users will readily adopt the token for everyday transactions. Legal expert Bill Morgan has acknowledged that while the language used is somewhat cautious, it signifies significant movement towards broader acceptance. He remarked, “It reflects a promising step toward the adoption of XRP.”
The Numbers Game vs. Real Usage
While the figure of 60 million members is eye-catching and headlines-worthy, it’s important to differentiate between access and practical usage. Many loyalty program members may not travel frequently, nor utilize the offerings of partner services.
Wetour’s focus on premium transportation and special promotions may limit initial engagement to a smaller subset of that 60 million, rather than a widespread uptake. Nevertheless, individualized pilot programs often start small, building momentum based on user engagement and demand.
Regulatory Framework & Business Viability
The recent announcement highlights that the integration of these payment solutions relies heavily on future business developments and adherence to regulatory frameworks. This is especially critical, as both payment systems and loyalty programs must navigate local regulations, cross-border compliances, and financial legislative requirements. Achieving a comprehensive rollout will necessitate resolving these issues, which could require considerable time.
Such partnerships mark a defining moment for XRP within the travel and loyalty sectors; however, caution is warranted as the landscape remains in its infancy and contingent upon specific conditions. Webus’ prior announcements—like their intentions for a $300 million treasury and exploratory plans involving the XRPL—serve to bolster the credibility of this initiative beyond mere conjecture.
Image courtesy of Meta, chart sourced from TradingView
