MasterCard Files Patent for Blockchain based Payment System

The propose system would reduce the amount of time needed to settle transactions

mastercard files patent blockchain based payment

Mastercard is looking at blockchain as a possible means of easy payment processing and filed a patent last week.
Since 2014, blockchain has quickly gained popularity among financial and fintech houses that were eager to avoid SEC scrutiny of their cryptocurrency holdings but were glad to use the tech to speed up transaction times.
Recently, the American global payments and technology company Mastercard filed an application patent for the same reason.
In the patent application released by the U.S. Patent and Trademark Office, the credit card giant describes a “Method and System for Instantaneous Payment Using Recorded Guarantees” so that clients do not need to wait days to receive their funds.

The application is not a clone but a patent that assumes that a blockchain database will be available to handle the international transactions instantly. The patent further indicated that the tech would help as a ledger, storing and verifying the transaction records. Transaction amount and account profiles of the involved parties would be stored efficiently with a guaranteed payment. Confirmation of the payment would take place by generating a confirmation message for both the sending and receiving authority.

There is a need for a technical solution where a payment transaction can be guaranteed in a manner that is readily verifiable by an acquiring financial institution and/or merchant, and where the guarantee can be used in conjunction with multiple types of payment instruments as well as multiple transaction types, including e-commerce transactions.” The application detailed.

Mastercard has repeatedly explored blockchain tech before, even though its CEO Ajay Banga publicly attacked bitcoin and referred cryptocurrencies as ‘junk’.

“Blockchain is an emerging technology and at Mastercard we believe that there is a role for blockchain in the future of commerce,” Mastercard Inc. Nov 2016

A similar patent was released by Mastercard in September focusing on a blockchain configured ledger to store payment histories.
Last month, the company announced to make direct business to business (B2B) transactions by accessing the blockchain tool it was developing.

Also Read: Mytime pays users for spending time in cryptocurrency

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