Mastercard and its Blockchain Payment Network
Mastercard Inc, the world’s second-largest payment processor after VISA that offers card users a variety of services worldwide, has recently filed for several patents regarding blockchain technology. The company claims that it will help cryptocurrency move from being considered an alternative currency to being used on a larger scale to carry out more secure payments.
Mastercard Inc has recently filed over 50 patents for its own blockchain-related technology. Many industry experts believe that the company is very interested in improving and streamlining the digital currency market as it sees potential in this rapidly growing business space.
Despite several patent filings, the company did not reveal any details apart from the fact that they are related to blockchain technology and will be used for several applications such as communication between banks, payment information handling, and currency exchange process.
Blockchain Network by Mastercard Inc
Mastercard has acquired Iron Mountain Digital Company LLC to step up its game concerning blockchain-based digital transactions. It is a cloud storage company based in Boston, Massachusetts. The acquisition of this company will give Mastercard more than 10, 000 employees to help implement its plans for the blockchain ecosystem.
To put this in a better perspective, Mastercard has about 9000 patents currently, and it would like to improve its patent portfolio by acquiring Iron Mountain Digital Company LLC and using its talent pool. It intends to use all the talent and patents to support its own blockchain network, helping them exchange money securely.
The company has filed for 56 international patents and 6 patent applications in different countries such as the U.S, China, Japan, Russia, and the United Kingdom, among others.
Why is Mastercard interested in Blockchain Technology?
Mastercard Inc believes that blockchain-based payments are more secure and will reduce the risk of hacking and identity theft. This is one thing that has been plaguing banks since time immemorial. With this technology, Mastercard wants to process transactions at a faster rate while making sure they don’t entertain any fraudulent activities from its users. It will help ensure they don’t run obsolete.
The company believes that blockchain technology can completely change the way people do business and transact money on a global scale. It could potentially be faster, more efficient, fraud-proof, and less expensive than other digital payment methods currently in use by banks.
Some of the applications which Mastercard plans to put this technology include-
1. Payment Information Handling:
The company plans to allow its users to view payment information within the blockchain network for better transparency in transactions.
2. Currency Exchange Process:
MasterCard’s plans include creating an exchange process on its own blockchain that would speed up currency conversion times.
3. Peer to Peer Transactions:
Mastercard plans to use blockchain technology to create a peer-to-peer network to exchange data without intermediaries or third parties involved.
Given all these patents filed by Mastercard, it is clear that the company believes that blockchain technology can change the way payments are carried out. As long as Mastercard does not reveal any details regarding these patents filed, it is unclear whether they plan to use their own blockchain technology or partner with other companies that already have a strong foothold in this field. Several blockchain technology companies are out there, including Ripple Inc and Ripple Labs Inc.
These are both based in the United States and were formed by Chris Larsen and Jed McCaleb, respectively– Both have huge experience in this field, with Larsen being an American entrepreneur that has created numerous successful business ideas over the years while McCaleb is an American programmer that has previously created E-Loan.
Since both Ripple and Mastercard have filed patents regarding blockchain technology in different fields of blockchain technology, it raises many questions about why these financial institutions are interested in this particular field.
Conclusion:
One of the main reasons these big corporations have started investing in this field is its potential in improving many aspects of commerce and business as a whole. Financial institutions can save a lot of time and money if they start using blockchain technology. It will be interesting to see whether they partner with each other or start up their own blockchain applications and systems shortly for the benefit of all parties involved.
It is too early to say whether blockchain technology will change payments as we know it, but there are many indications from different companies that this could be the case. Blockchain technology is sure to change the way business is conducted as a whole soon, especially if these patents and applications filed by these huge companies can actually be implemented.
It will be interesting to see whether these companies actually use their own blockchain technology or partner with existing companies in this field, but it is quite apparent that blockchain technology can improve the way financial institutions operate. Soon enough, transactions will become faster and safer for everyone involved.Have you been looking for more business opportunities? Well, PSP.Academy is the best place to find it! We have a team of experts who can help with marketing and advertising your company in order to get those new clients coming through the door –Register now to eminently propel and drive your prospect generation and conversion rates so they’ll be sky high before long!
