WeChat testing blockchain tech for quicker corporate refunds to employees
Chinese tech giant Tencent Holdings, the parent company of popular messaging app WeChat, is testing if blockchain technology can speed-up the reimbursement process of corporate expenses to employees. The company is testing the trial run on WeChat, according to a blog post published on Friday.
As part of the pilot testing, a user paid the bill at a local eatery in Shenzhen, China, using WeChat Pay, its own payment service. Tencent claims the delay was less when the payment data was fed over its blockchain platform to the user's employer, the restaurant, and Shenzhen's local taxation authority.
Tencent believes using blockchain will make the reimbursement process quicker and secure as well. Further, the distributed ledger technology will curb fake receipts.
China's current system is complex because merchants need to give two different receipts for companies and individuals. If an employee is dining at the company's expense, he or she needs to take a separate receipt that has the individual's taxpayer number and employer mentioned, Coindesk noted.
It is a laborious process, as merchants need to manually type the details on the receipt for each instance. Later, all such receipts need to be filed for claiming refunds.
Now, some merchants have taken part in the integration process. One of them is a parking lot at Shenzhen's Bao'An Stadium. An automobile repair center and a restaurant owned by Tencent are also part of the pilot project.
Image via Shutterstock
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