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Mastercard To Use Blockchain To Track Consumer Payments

Mastercard is ready to use Blockchain technology to improve its services and processes. According to newly published patent filings, the company is analyzing blockchain technology for keeping track of consumer payments.

Mastercard Analyzing Blockchain Technology

The U.S. Patent and Trademark Office has published several patent applications filed by Mastercard. The application number is 62467900 and the filing date was March 7, 2017, more than a year ago. Furthermore, the patent is titled: “Method and system for recording point to point transaction processing.”

Mastercard explains that it is possible to use blockchain technology and record ‘point-to-point’ transactions’ as they are processed. This would simplify the process used to register orders and how they are monitored.

The firm commented:

“The use of digital ledgers, such as blockchains, may further facilitate the services provided by such a platform, by enabling data to be stored clearly and in a format that is easily auditable by participating entities. In cases where ledgers like blockchains are used, the leaders may be provided even more benefits as they may be immutable and resistant to tampering, which may further increase the reliability of such data.”

The patent application says that it is possible to provide more services to entities. Moreover, these new services are more secure and transparent than other systems.

However, these patent filings are not related with cryptocurrencies. Back in July, we wrote at UseTheBitcoin that Mastercard CEO called virtual currencies ‘junk.’ Ajay Banga said that cryptocurrencies cannot be considered a medium of exchange since their price fluctuates widely.

Nonetheless, the famous company registered a patent in the past that would allow users to manage ‘fractional reserves of blockchain currency.’

Seth Eisen, Mastercard’s senior vice president, said that some customers prefer using virtual currencies for anonymity and security.

The document explains that while blockchain currencies can secure payer’s information, the security may be limited for payees. This happens due to the current limitations of blockchain systems.

Other companies such as American Express are implementing different blockchain solutions to improve their products. American Express would be using Hyperledger technology in order to power its loyalty rewards program.

 

Carlos is an international relations’ analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.

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