Mastercard to implement blockchain system to boost card payment security
Well known and reputable financial services giant, Mastercard has filed a patent for a blockchain system that aims to forge a path for more secure card payments at a quicker rate. The “Method And System For Payment Card Verification Via Blockchain” patent application states that the system will utilize blockchain features to assist in the transportation and retrieval of payment processes by swiftly verifying and securing user information.
It is noted that the existing method of “wireless transmission of payment credentials,” is subject to vulnerability as transactions can be intercepted. By applying blockchain technology to accounts, Mastercard plans to aid the technological ailments of providing personal banking services by implementing a verified secure way of transferring payments. The document states,
“...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.”
Skimming is the act of pulling payment credentials from various modes of payment, whether they are secured or not. Skimming can also be the interception of wireless transmissions from a payment instrument to a register or point of sales system. The encryption process that the patent document states will be used, will encode the payment cards’ information and store it on the blockchain. A public and private key will then be issued so that when the card is used during a purchase, a request for retrieval will be logged and the system will employ the use of the keys to decode and verify the transaction.
While Mastercard vice chair Ann Cairns believes that the company has “built a Blockchain that can run the whole [network],” as stated at the Money20/20 conference, she also believes that the decision to integrate blockchain technology on a smaller scale is the right one. Noting that not all companies should replace their current systems with blockchain technology because they might not be adequately equipped to “create a better user experience.”
Author： Sarah Reyes
Executive editor： Sarah