The American Express payment system is exploring the Blockchain distributed registry technology to accelerate payment transactions between the buyer and the seller.
The company has already sent a patent application to the US Patent and Trademark Office. It describes the principles of the future system. The application for payment is sent to the blockchain, where processing is performed using a smart algorithm, risks are analyzed and the system decides whether to approve the payment or not.
In case of a positive result the system withdraws a certain amount from the buyer and then adds it to the seller’s account. Of course, to access to such a system you will need to have digital blockchain wallets. The main advantage is the absence of third parties, unlike banks, because the processing of the request will take place directly in the blockchain.
A distributed registry can also improve traditional P2P payments, which will also be used in the system, according to the information from the patent application.
“A payment network based on peer-to-peer payments may be used to facilitate most functions of traditional card payment networks and to enable additional services and functionality” – the document says.
It is worth noting that it’s not the first time the company has come up with patents for development. So the application published last October was put forward as a part of the program of remuneration of clients. At that time the representatives of American Express said that the security provided by blockchain would have a positive effect on the reward system.