American Express Issues a Recent Patent for Blockchain Payment Verification
According to the United States’ PTO, the patent was issued by American Express to incorporate blockchain technology into their new payment verification process as of the 12th of July.
The newly issued patent proposes an automated payment verification system in which payment data would be encrypted, linked to a public key, designed with the structure of blockchain technology. This encrypted information will include both the quantity of a transaction as well as the seller’s identification.
This system of encrypted data would allow for a series of verification process to move along the blockchain structure from one node to another. One proposition for the project suggests that this payment data could be decrypted by smart devices matching the data with the buyer.
With this payment structure, American Express believes that a blockchain system has the potential provide the necessary security as specialized devices are made to pick out these valid payment verification procedures and carry out payment solutions for their customers.
The recent patent also covers several possible uses for this mode of verification including scenarios regarding rentals agreements, reservations, as well as entertainment-based purchases such as venue access. Each of these scenarios could be carried out by these buyer’s smart device which in turn would retrieve payment data and verify proof of purchases along a blockchain.
American Express’ Amex arm has established an interest in the structure since joining an organization entitled the Hyperledger Blockchain association in an attempt to create and understand blockchain related systems and its uses across various industries.
According to reports this May, Cointelegraph stated that Amex confirmed the integration of a Hyperledger into the company’s Membership Rewards structure. The project, supported by partnering online-based store, Boxed, will allow sellers to create customizable offers for Amex users in hopes of boosting engagement among customers.
Last year in October, the bank filed a patent under the same listing for a blockchain based rewards system in hopes of creating an incentive among existing customers.