US Patent and Trademark Office (USPTO) has published the patent submitted by the Mastercard Inc (NYSE:MA) to verify the blockchain based payments at the point of sale terminals.
The patent filed by the card issuer is aimed at preventing the card skimming. It is used to prevent the theft of Mastercard credentials by the thief managers, who steal the card details with the help of a magnetic strip or by means of a radio transmission.
A Perfect Mechanism to Safeguard the Blockchain based Payments
According to the latest patent submitted by the Mastercard, the cardholder need to carry another device to authenticate the card transfers and prevents the transfer of details from the card.
The new mechanism ensures safe transaction using a Mastercard at a thirdparty terminal without losing the card details through electronic means. The user will make the payment at the point of sale terminal just by showing a machine-readable code. It prevents the reading of card details through other means at the point of sale terminal. You can easily shield the display in a purse or a pocket.
However, it is not a new mechanism to ensure the safe use of the blockchain based transactions. It has already been in use at Internet Banking portals for authentication of the credentials.
The new system will use the blockchain for storing the card details and facilitates commercial transactions with ease. Therefore, the users are protected in case of the failure of a single point.
Mastercard started stocking up the patents beginning in October 2017 at the time of rolling out the proprietary blockchain based API to facilitate fiat payment processing.
Who Will Benefit from Blockchain Based Mastercard Transactions?
The patent approved by the US PTO on June 7, 2018, will help the travel industry worldwide. It ensures the safe use of blockchain based transactions by the travelers at various airlines, hotels, as well as other service providers.
It ensures easy accessibility of the travel itinerary publicly for the merchant for bidding. Therefore, travel providers will benefit from this new initiative without spending much on the resources.
The traveler will provide information of itinerary that will be included in the block and then broadcasts through the blockchain across various connected nodes. The merchants can use this information for reservation requests that will be processed at the server and returned to the traveler.