MasterCard patent to place credit cards on blockchain
MasterCard Wins Blockchain Backed Card Patent
Giant payment card company, MasterCard, has just won a patent . The patent allows the MasterCard to put credit cards on a public blockchain.
In a bid to curb skimming of credit cards, MasterCard is going to place all credit card payment on a public blockchain. The financial company won a patent application that grants it the go-ahead to explore blockchain technology to protect credit card users. Through the system, payment transactions will be verified through a third party data source based blockchain technology.
According to documents filed at the U.S. Patent and Trademark Office (USPTO), the system will first capture the image of the payment card and store it on the blockchain solution. While storing the payment card image, the blockchain system encrypts the image with both public and private key. The card’s image will only be retrieved when the cardholder is doing a payment transaction at the point of sale to pay for services or goods. Upon retrieving the card images to verify the payment transaction, the blockchain system verifies the payment transaction by decrypting the card’s image using the keys assigned early.
Advantages of the system that MasterCard Intends to use.
Blockchain technology is an innovative technology. Its integration into a point of sale system would secure the entire process by encrypting the whole process on the system. Further, the other benefit that comes with the blockchain system is the cardholders don’t need to present the card physically at the point of sale. The transactions would only be done via a machine-readable code hence no need for presenting the card. Apart from the blockchain system for the payment cards, MasterCard has also updated its application for its travel itinerary bidding platform based on blockchain system.
Through blockchain technology, MasterCard hopes to get rid of the skimming of credit cards which yearly sees around 2 billion dollars lost. Further, blockchain integrations into the financial system will streamline the finance industry and improve service delivery.
MasterCard is a leading payment company with over 50 years of expertise in using technology to deliver not only safe but better financial services. Its implementation of a blockchain solution for the financial industry will fast-track the blockchain implementations in the financial sector.The platform recently increased the charges on its card for cryptocurrency purchases.