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July 19, 2018

Mastercard patents method to manage blockchain payments

Mastercard has secured a patent for a method, which will enable it to manage fractional reserves of blockchain currency.

The system will connect blockchain-based assets including Bitcoin to fiat currency accounts in order to allow cryptocurrency payments through credit cards.

The new system will comprise a central database, an account database, a receiving device and processing device.

Mastercard said that existing payment networks and processing systems using fiat currency are designed to enable safe storage and protection of consumer and merchant information.

Furthermore, current systems are usually configured to perform fast calculations, risk assessments and fraud algorithm applications in order to facilitate rapid processing of fiat currency transactions.

With its new approach, Mastercard intends to combine the benefits of these traditional systems with those of decentralised blockchain. However, the company has not yet launched any such product.

In its filing, Mastercard said: “There is a need to improve on the storage and processing of transactions that utilise blockchain currencies.

“The use of traditional payment networks and payment systems technologies in combination with blockchain currencies may provide consumers and merchants the benefits of the decentralised blockchain while still maintaining security of account information and provide a strong defence against fraud and theft.”

Topics in this article: , ,
  1. News
  2. Company news
July 19, 2018

Mastercard patents method to manage blockchain payments

Mastercard has secured a patent for a method, which will enable it to manage fractional reserves of blockchain currency.

The system will connect blockchain-based assets including Bitcoin to fiat currency accounts in order to allow cryptocurrency payments through credit cards.

The new system will comprise a central database, an account database, a receiving device and processing device.

Mastercard said that existing payment networks and processing systems using fiat currency are designed to enable safe storage and protection of consumer and merchant information.

Furthermore, current systems are usually configured to perform fast calculations, risk assessments and fraud algorithm applications in order to facilitate rapid processing of fiat currency transactions.

With its new approach, Mastercard intends to combine the benefits of these traditional systems with those of decentralised blockchain. However, the company has not yet launched any such product.

In its filing, Mastercard said: “There is a need to improve on the storage and processing of transactions that utilise blockchain currencies.

“The use of traditional payment networks and payment systems technologies in combination with blockchain currencies may provide consumers and merchants the benefits of the decentralised blockchain while still maintaining security of account information and provide a strong defence against fraud and theft.”

Topics in this article: , ,
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