Mastercard blockchain is here: Leggi qui l’articolo in Italiano
Between credit cards and the crypto world, there has always been a war, hidden or declared.
For example, Mastercard has long blocked cryptocurrency purchases via its service, even though the decision has had a negative impact on their business.
Today we know that this credit company while opposing cryptocurrencies, does not despise the underlying technology.
In fact, they filed a patent application with the USPTO office for a system for authenticating credit cards from the point of sale (POS) using blockchain technology.
The patent application is entitled: “Method and System For Instantaneous Payment Using Recorded Guarantees” and, even if the term blockchain is not used in the title, the same word can be read 95 times in the document and refers to sensitive procedures such as verification of identity and signature of the customer.
In this case, the payment transaction between Mastercard and the customer’s bank takes place in parallel with a blockchain transaction, which is used to verify the customer’s data and guarantees.
This information exchange should generate a code that allows the merchant with the POS to uniquely verify the identity of the person presenting the credit card.
Credit card transactions can be guaranteed by the bank in the same way as cashier’s checks.
Among other things, this payment system could be verified live by the retailer using the patented Mastercard system with blockchain.
According to a 2016 study by the Innovation/Aite group on credit card fraud, the value of fraud is expected to rise to as much as $10 billion in 2020.
This gives an idea of the impact that this innovation could have on the credit card industry.