American Express proposes to use blockchain to improve the efficiency of payment systems
The issuer of plastic cards American Express considers the blockchain as a mechanism to improve the efficiency of payment systems. Writes about this CoinDesk.
In a patent application published by the U.S. Patent and Trademark Office on Thursday, the travel product development arm of the company describes how the technology can be used to transfer payments between two participants..
In the described system, one of the participants sends a request to the blockchain, which is approved or rejected depending on a number of factors, including the degree of risk. If the request is approved, the system automatically makes a payment, changing the account balances of the sender and recipient.
To gain access to the system, participants create digital wallets on the blockchain. Thus, the payment is made directly through the blockchain without the involvement of third-party services..
The authors of the application emphasize that the bitcoin blockchain does not meet the company’s requirements, since, firstly, it is public, and secondly, the bitcoin price is characterized by increased volatility..
At the same time, they note that the blockchain system can improve the performance of existing American Express networks..
“A payment network based on peer-to-peer payments can be used to perform most of the functions of traditional payment networks using bank cards and provide additional services and functionality,” the application says..
Last April, the same division of American Express filed another patent application that described how blockchain could be used to set up a customer reward system..
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