MasterCard is Exploring the Use of Public Blockchain in Securely Verifying Payment Cards
June 9, 2018 12:23 pm
Payment Giant Mastercard Patent would Put the Credit Card on Public Blockchain
As per the patent application filed with the U.S. Patent and Trademark Office (USPTO) and issued on Thursday. Mastercard has come up with a conveyance and retrieval processes to verify customer payment credentials over a “publicly accessible blockchain.”
The document clarifies that the two – way method initially encodes an image of a payment card and then store it on the blockchain after encryption with a private and public key. Upon a retrieval request when a payment is being made, the system will utilize the given private key to decrypt the image so it can be checked.
By incorporating the system with point-of-sale devices, Mastercard states that the transactions would be secure, as the card is not required to be physically present, and customers need not worry about payment credentials being “skimmed” from the payment device.
Mastercard said in the Document:
“The transaction may be conducted via the display of a machine-readable code to the point of sale device, which may further avert skimming as the reading of such a code can be more easily controlled via control of the underlying display; the display can be easily shielded and is often covered when in a pocket or purse.”
Although an actual product will emerge from the concept, the work indicates a notable effort by Mastercard to use a public blockchain to improve a common problem with its core card business. As per some sources, card skimming at ATMs and point-of-sale (PoS) over all providers sees approximately $2 billion stolen per year globally.
Besides, another blockchain-related research by Mastercard was too revealed in yesterday’s patent update, which looks to build a blockchain to enable the consumer to broadcast their travel plans and reservation requests to merchants.
As the blockchain data will remain visible to the public, it allows merchants the opportunity to bid for the potential client over blockchain, possibly changing the current model of hotel and air ticket aggregators.