Mastercard submits patent for blockchain system to improve card service

MasterCard is about to get a patent for managing partial reserves of digital assets. The annex to the application describes a system which will simultaneously track cryptocurrency and fiat assets, in other words, a web wallet in combination with the cryptocurrency and fiat accounts. In fact, the patent describes a network of cryptocurrency credit cards.

“It is necessary to improve the storage and processing of cryptocurrency transactions on the blockchain. The existing payment systems and the systems of payment processing which use the fiat currencies are specifically designed and configured to securely store and protect information, the credentials of consumers and trading companies, and the transfer of confidential data between the computing systems. Besides, the existing payment systems are often configured to perform complex calculations and risk assessments, and their application algorithms for detecting fraudulent actions work extremely fast with the aim to provide efficient processing of currency transactions,” it is pointed out in the application.

“Accordingly, the use of traditional payment networks and payment system technologies in conjunction with cryptocurrencies on the blockchain can provide consumers and merchants with the advantages of a decentralized blockchain, while maintaining the security of account information and providing reliable protection against fraud and theft.”

Mastercard sees advantages in combining the traditional and cryptocurrency technologies, and the described system most likely includes the existing products and payment networks of the company.

“The transactions which can be made through the payment network can include the purchases of products or services, credit purchases, debit transactions, transfers and withdrawals, etc. The payment networks can be configured with the aim to perform cash equivalent transactions, which may include payment cards, checks, operating accounts, etc.,” it is stated in the patent application.

MasterCard strives to do the things the company does best – to process transactions. MasterCard can potentially make a huge contribution to the Bitcoin economy, allowing millions of the existing customers to accept cryptocurrency payments.

In October, the company patented a blockchain system for supporting multiple currencies, but in September, it applied for a blockchain patent to track payments.Besides, last autumn, MasterCard submitted patent applications for instant payments in the blockchain, and in February of this year, it was reported that the company plans to patent 30 blockchain developments.

In April, Mastercard submitted a patent application for protection of personal data identity using the blockchain, and in June – on the blockchain to verify the coupons and protect the card data. In addition, this year, the company received two more patents – on the technology of linking the account to the cryptocurrency and the technology of anonymous blockchain transactions