MasterCard patents new blockchain-based payment method for B2B transactions

15 Sep, 2018
by Richard Allen
News
MasterCard patents new blockchain-based payment method for B2B transactions

According to the patent application that was made public on Thursday, MasterCard has invented a blockchain-based system designed to simplify business-to-business (B2B) transactions, BCFocus reports.

The application reads: “Businesses rely on a complex ecosystem of technology, processes, and people internally as well as with thousands of business-to-business (B2B) solution providers and networks to manage their invoices and make or receive payments nearly every day. With the increasing number of entities engaging in financial transactions, the number of electronic payment transactions processed each day continues to grow, with the number often being in the magnitude of hundreds of billions each day.”

MasterCard explains that the traditional method of handling B2B payments is outdated and struggling to keep up with increasing volumes, which has resulted in increased stress on the processing power of accounting and settlement systems.

As such, the financial services giant has emphasized the need for a uniform method of payment that can expedite B2B payments, and believes blockchain is the answer.

“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 ledgers 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 goes on to say.

The patent doesn’t specify whether the system will be built on a public or private blockchain, but if MasterCard goes through with its plans, it’s likely that it would exist on a permissioned network.

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