American Express will benefit from Blockchain technology. The global payments giant said that using Blockchain technology will increase the speed of transactions and the quality of the services they provide to their customers.
To the U.S. Patent and Trademark Office (U.S.. American Express Travel company, which is the travel arm of American Express, which came to the agenda with the patent application (Patent and Trademark Office) stated that it will use Blockchain technology to facilitate payments between the two parties by using transaction requests.
How American Express will use Blockchain technology ?
A payment request received through the system will be sent to the Blockchain-based system, which will be approved or rejected based on various factors, including risk analysis. If the payment request is approved, the payment transaction will take place automatically and information regarding the accounts held by both the payer and the receiver will be arranged.
To access the system, the transacting parties must create digital wallets on the blockchain. As a result, payments are handled directly through Blockchain, not through a third-party banking institution.
Blockchain technology will facilitate the functions of card payment networks
Patent application references peer-to-peer payments using a Blockchain. At the same time, Bitcoin’s price volatility and whether this network complies with American Express requirements is a separate issue.. In particular, the company claims that a Blockchain system could improve on current card payment networks:
A system based on peer-to-peer payments would facilitate the functions of traditional card payment networks. It can also be used to provide additional services and functionality.
This is not the first time American Express’ travel and commerce unit has shown interest in blockchain applications.. A patent application filed last April was discussed using Blockchain as part of a customer rewards program. By adding Blockchain solutions into customer reward systems, it was tried to offer personalized innovations for users.
Coindesk