Blockchain technology is one of the emerging technologies in the world now, especially in the financial services and banking business. Mastercard, a leading card company in the world, is taking new strides into blockchain technology. The company has filed several patents for using blockchain technology with the US Patent and Trademark Office. A patent application titled “Method and System for Recording Point to Point Transaction Processing” reveals more about Mastercard’s plan of implementing blockchain systems into its network.
What Does Mastercard Seek With the Patent?
Mastercard suggests that blockchain technology can be used to record “point to point” transactions as and when they are processed. This could help in simplifying order registration and monitoring process.
In its application, the company explained:
“The use of digital ledgers, such as blockchains, may further facilitate the services provided by such a platform, by enabling data to be stored clearly and in a format that is easily auditable by participating entities. In cases where ledgers like blockchains are used, the leaders may be provided even more benefits as they may be immutable and resistant to tampering, which may further increase the reliability of such data.”
The patent application also suggests that these services could be provided to various entities as a means to having secure and transparent payment recording. The company could be looking at creating a single point of reference that replaces or assists existing point-to-point and business-to-business purchase transactions. The patent could be the most crucial among all its blockchain payments as it addresses Mastercard’s core business proposition.
Is Mastercard Talking About Cryptocurrencies?
The company has had negative views on cryptocurrencies, and it is unlikely that the “payments” talked about in the patent relate to digital currencies. Ajay Banga, Mastercard CEO, has called cryptos “junk,” adding that wild price fluctuations make cryptocurrencies unsuitable as mediums of exchange. However, the company has previously filed a patent to allow users to manage fractional cryptocurrency reserves. The senior vice president at Mastercard, Seth Eisen, said that some customers prefer to use digital currencies for security and anonymity.
Does this mean that Mastercard is secretly working on a crypto project? The various answers to this question are currently only speculations.