Blockchain System to Secure Card Payments: Mastercard Files Patent
Blockchain system will be used by Mastercard for faster and secure payment transactions. Mastercard filed a patent application for blockchain software to provide quick and secure transactions through their cards. U.S. Patent and Trademark Office USPTO patent filing published on Thursday.
“Method and System for Payment Card Verification Via Blockchain”- patent application explains a public blockchain assisted conveyance and retrieval of payment processes to verify and secure users’ information.
In the released document, the vulnerability of existing means of “wireless transmission of payment credentials,” claiming that they can be “subject to intercept,” is recorded. The company targets to facilitate a safe and secure method of conveying payment credentials by incorporating blockchain. It also involves “minimal participation by the consumer.”
The company’s recent application is intended to bring a solution to resolve the technical difficulties by facilitating security and benefits.
“Thus, there is a need for a technological solution to enable the conveyance of payment credentials to a point of sale device that requires minimal participation by the consumer, while still maintaining a high level of security, particularly against skimming.”
As declared by the patent document, the process of encryption encodes the card's information and records it on the blockchain, after which two keys are issued, a public and a private key. When the card is used for purchasing, it makes a request for retrieval. Then the system verifies the card information using keys to decode it.
“Skimming” is a practice that” enable[s] a nefarious actor to pull the payment credentials from a payment instrument, even when securely located in the consumer's wallet or purse, or to intercept the payment credentials as they are being wirelessly transmitted to the point of sale device.”
The U.S. Patent and Trademark Office (USPTO) published an application for a "Method and System for Authentication of Coupons via Blockchain". USPTO published the application on the 31st of May. According to the patent application, the payment giant will utilize Blockchain Technology.
Image via Mastercard
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