Mastercard’s New System to Simplify B2B Transactions via Blockchain

plastic card 1647376 1920

Three patent applications were filed by financial services giant Mastercard with the US Patent and Trademark Office (USPTO) and announced in public Thursday.  The New York-based firm has developed a system based on blockchain which they believe can simplify high-volume business-to-business transactions.

In one of the patent filing, the authors explained that the scale on current settlement systems does not meet the needs of the 21st-century enterprises.

As written on the filing: “Currently, existing settlement systems often operate using the settlement of individual payment transactions. For example, after a transaction is processed, the issuing bank will transfer funds for that single transaction to the settlement network, which will then forward the funds for that single transaction on to the acquiring bank. Since most businesses are not financial firms, or financially regulated, B2B transactional innovation left payment flows between the parties intact,”

“As a result, 21st century B2B collaboration sits on an unwieldy, unconnected and largely unchanged mid-20th century B2B payments platform. As the number of transactions being processed, and therefore settled, increases, the strain on the processing power of settlement systems and those of financial institutions increases, as well as the number of fund transfers that must occur every day.” the patent authors wrote.

Mastercard argues that there is a need for a uniform payment system that will allow businesses to execute B2B transactions more efficiently, and the firm believes a blockchain or other type of digital ledger could be an ideal solution for such an inter-enterprise settlement system.

Mastercard, in its argument, stated the need for a business system that is uniform which enables firms to efficiently conduct B2B transactions.  The financial giant thinks that digital ledgers or blockchain can be an effective solution for inter-business settlement processes.

The authors also wrote that blockchain should be able to store data in the system in a format that is accessible and can be audited by transacting parties while remaining to be tamper-proof.

[wp-faq-schema title="FAQs" accordion=1]
Marko Tee

Marko Tee

Contributor and news writer for Cryptolitan.com. Marko has 4+ years of experience as a journalist and covered cryptocurrency and blockchain technology. He has years of experience writing about tech news and innovation.

Related News

Hot Stories

Filecoin price analysis: FIL price stumbles at $5.52 due to a bearish takeover
Dogelon Mars Price Prediction 2022-2031: Is ELON a Good Investment?
Swiss data and analytics service Nuant prepares for the Q4 launch of the first unified platform for digital asset data, analytics & portfolio intelligence
Hollywood star teams up with a crypto firm to give out free NFTs
ApeCoin Price Prediction 2022-2031: A strong buy sentiment for APE?

Follow Us

Industry News

Hollywood star teams up with a crypto firm to give out free NFTs
BUSD turns 3. Here's a recap on how it all happened
What’s next for LUNC after Binance burns $1.8M in tokens?
Tron's Justin Sun plan for Credit Suisse goes viral
Access point nodes: How can they be of service?