Accounting Software Giant Intuit Awarded Patent for Bitcoin Payments via SMS

U.S-based business and financial software firm Intuit was awarded a patent for processing Bitcoin (BTC) payments via text message (SMS).

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U.S-based business and financial software firm Intuit was awarded a patent for processing Bitcoin (BTC) payments via text message (SMS).

This is according to a filing that was published by the U.S. Patent and Trademark Office (USPTO) on August 7.

USPTO explains the patent

According to the filing, the patent shows how a system of virtual accounts could enable two users to transfer funds with the help of their mobile phones.

Intuit first filed for the patent in 2014, which happens to be the same year that the company’s DIY tax solution QuickBooks partnered with BitPay to create a PayByCoin service.

PayByCoin was designed to allow business clients to pay their invoices using Bitcoin.

The filing stated that the invention is a sort of method of payment that would permit a payment through text message, which would include the payment amount identification of the payee.

Payments can be validated via text message depending on the payer’s balance of a virtual payer account.

The patent granted to Intuit describes the interaction virtual accounts developed to run the system.

It also talked about the different possible approaches to validating and approving transactions.

One of the approaches would see a user receive an unanswered phone call within a stipulated time period. This would happen after the user has received a text message that would identify the owner of the mobile device.

A second approach is a password system style which would be managed using SMS and the virtual account linked with a mobile device identifier.

Cryptocurrency adoption, with the help of cell phones, is an option that companies have been exploring for years. The approach is considered by many to be very important in bringing financial inclusion via cryptocurrencies to unbanked populations.

This method is expected to be very important in countries where internet access is sparse or where expensive computer hardware might limit people’s ability to transact in digital currencies.

Cryptocurrency functions on mobile devices becoming a trend

In an unrelated news, electronics company HTC announced recently that it has concluded plans to launch a smartphone with a native crypto wallet and support for CryptoKitties, the Ethereum-based decentralized application (DApp) game.

The firm launched its first blockchain smartphone project, the HTC Exodus, which would support both the Bitcoin (BTC) and Ethereum (ETH) networks.

The company is currently working on releasing a white paper on another project where they would add cryptocurrency mining to mobile devices before the end of the year.

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