Tencent is looking into the viability of implementing a blockchain network to expedite the reimbursement of employees, and CoinDesk reports they’re already testing it on their messaging service WeChat.
A local blogpost reported today that Shenzhen has been chosen by the company as the pilot city for the technology. Additionally, China’s first ever blockchain-issued bill was tested at a restaurant in the city, where a customer paid through existing payment mechanism WePay.
Tencent explained that normal delays can be significantly reduced by initiating the payment process on the blockchain platform, as the user’s employer, the restaurant and Shenzhen’s tax authority can bypass the manual claims process. If all goes well, Tencent hopes to implement the technology to expedite the reimbursement process and reduce the amount of falsified receipts.
China’s current reimbursement is cumbersome and requires merchants to issue different payment receipts to individuals and companies. If an individual needed to be reimbursed for a dining expenses, for example, they must request a receipt for companies listing the exact tax number of their employer.
But before the employee can do that, they must first have the merchant manually type in the taxpayer number. Then receipts need to be collected and a claim must be filed before the refund can be processed.