Blockchain technology seems to be getting popular with each passing day despite people still finding cryptocurrencies to be controversial. This time, it will be applied for payments.
Firstly, it is essential to understand the difference between blockchain and cryptos. Blockchain is a technology whereas cryptos are digital currencies that make use of blockchain, and just like cryptos American Express appears to be interested in blockchain as well.
Blockchain will make payments secure
With over 33.83 million users in the US, according to Statista, American Express is a powerful name in the industry today. If it appears to be interested in blockchain, then it would be safe to say that blockchain is going mainstream.
The company has been on the lookout to find ways to improve its functionalities while reducing cost and risk.
Financial fraud is one of the most common scams out there, and even a big company like American Express is not entirely safe. However, the good news is that the company is taking steps to provide better security and service to all its customers while making its business more secure and customer friendly.
It recently filed for a patent at the U.S. Patent and Trademark Office. According to the application submitted by the company, it intends to use blockchain system to receive payment confirmation with payment details such as merchant’s identity and the amount transferred.
This is not the first time that American Express has shown interest in such a system, but it is the first time it has shown any interest in using blockchain technology.
The concept is a part of the company’s plan to add some new options to prove payments when a transaction occurs between a merchant and a customer. So far, customers and merchants only get a receipt or a ticket as a proof of payment, but with this technology, they will have a more substantial proof of evidence, which can provide them with more benefits as well.
While the company appears to be planning on using blockchain only to verify transactions, there is no doubt that such a system can have other uses as well.
The applications of blockchain beyond payments
Technology has changed how we do business, making transactions safer, faster and easier.
The company says that data gathered through such technology can be used to give customers access to property as the card used to make the payment can be used to unlock doors in the future. While nothing is set in stone yet, the company appears to be working on such technology, and it might soon come out to be true.
The system once in place would allow users to access places without the need for a ticket. The card would be able to open doors for them with the help of blockchain technology.
There is no word yet on where this system would be hosted, but there is no doubt that public networks can significantly benefit from such a system.
American Express has been on fire lately as it has filed a number of patents in the last few months, most of which seem to be designed to provide customers with a better experience overall.
It has already started working on some of the recently announced plans, such as its custom Membership Rewards program for cardholders, which uses Hyperledger’s technology. Based on this, it can be said that the company would soon be out with updates on this new patent as well.