American Express to Design Blockchain-based Transaction Facilitating System
March 17, 2018
Affiliated company to the American Express payment service will analyze Blockchain technology to increase transaction rate.
The tourist company American Express Travel has filed an application for using Blockchain to simplify payments among the participating parties to the transaction against corresponding proxy requests.
As the document says, the request for a payment is supposed to be transferred via blockchain that will accept or deny it taking into account some factors with risk assessment among them. If request is approved, the system will automatically process transactions and adjust accounts held by the payer and payee.
To gain access to the system the parties to the transaction will have to register their own Blockchain wallets. As a result payments will be executed directly through blockchain without third parties involved. The patent asserts, the upcoming project will enable a peer-to-peer payment system.
The company representatives have noted, Blockchain may also help in improving payment network structure:
“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.”
It is to be emphasized that it is not the first time American Express taking interest in Blockchain. In October last year the company considered using the distributed ledger technology for its personalized customer reward system.