MasterCard’s Latest Blockchain-Related Patents Look To Improve B2B Transactions

Payment processing giant MasterCard has filed three new patents for a blockchain-based system that it hopes will simplify and modernize the current business-to-business transaction climate.

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Payment processing giant MasterCard has filed three new patents for a blockchain-based system that it hopes will simplify and modernize the current business-to-business transaction climate.

This information was made public by the US Patent & Trademark Office (USPTO) on Thursday, September 13, 2018.

B2B settlement systems need to be updated

MasterCard submitted the three patent filings separately, though they are similar.

The company’s patent called “Method and System for Recording Point to Point Transaction Processing” explains that the current nature of B2B transactions needs to be updated so as to better cater to the modern business environment.

The patent added that the current B2B payment system is designed with individual payment structure in mind. This is a 20th-century mindset and is no longer applicable to the current business climate.

The number of transactions continues to increase and this requires the processing power of settlement systems to improve. Financial institutions would also need to increase their capacity to ensure that cater to the increasing transfers occurring every day.

The company explained that if it is granted approval, the uniform payment system it developed can enable data storage in a format that could easily be audited.

Blockchain technology would be beneficial to businesses since it is immutable and cannot be tampered with.

According to MasterCard, this function of Blockchain technology can increase the reliability of any data provided. Since most of the participants are not financial institutions, the feature would have even more benefits.

The company also pointed out that the system could either be developed on a public blockchain or a private one. If the payment company is granted permission, then the system would most likely be developed on the company’s private network.

MasterCard big fans of blockchain, not crypto

The company has long shown more interest in blockchain technology than cryptocurrencies.

MasterCard CEO Ajay Banga has been a vocal attacker of Bitcoin and other cryptocurrencies, calling them junk on several occasions.

He believes that their anonymous nature and high volatility makes them unsuitable as a medium of exchange. The fact that cryptocurrencies are used to conduct transactions on the dark web is something that Banga is against.

Banga further elaborated that the company would accept any cryptocurrency that is mandated or developed by a central bank as he believes government developed cryptocurrencies would be very interesting.

MasterCard has been one of the leading companies in terms of blockchain patent. It has heavily invested in the research and development of this technology over the past few years and looks set to continue doing so.

MasterCard has emerged as one of the leading filers of blockchain application patents, with 25 patents filed between 2015 and 2017 alone. It has won some patents this year for a blockchain-based coupon authentication system and a travel itinerary bidding system.

The company has also won a patent that would allow the linking of cryptocurrency with fiat currency accounts. This could enable the use of cryptocurrency to make everyday purchases, with the added convenience of debit and credit cards.

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