American Express Looking to Make Use of Blockchain-Based PPS (Proof-of Payments) System
American Express, the credit card company recently filed a proof-of-payment system patent application to be based on the blockchain technology. This is a firm that is already well-versed with this particular technology.
American Express History With Blockchain
In the last few months, American Express has made headlines with their public support for the blockchain technology. The firm recently released a American Express hyperledger based on blockchain to help it upgrade its Membership Rewards program. By doing so, it became the first major financial company based in the United States to make such a move.
Although bitcoin has for years been seen by many to be a major competitor, blockchain is today being viewed as the solution. American Express is a company that has come a very long way. If you take a look at the history books, you will note that its Chief Executive termed bitcoin as its one of its company’s major competitors, back in 2014.
But, Ken Chenault, the Chief Executive also went on record to note that the protocol employed by Bitcoin was going to make a major impact. With this statement, one can only wonder whether the Chief Executive already knew what his company was planning for the future.
Fast-forward a few years to 2017 and American Express goes ahead to make national news in November by announcing the development of a B2B (business-to-business) blockchain based payments channel. This is a channel that would enable businesses in the UK and the US to handle payments in an instantaneous manner.
It is a platform that came to fruition after a collaboration between two companies: Santander a banking firm based in the UK, and Ripple. Greg Keeley, an executive vice president with American Express went on to say that they had taken note of the role played by blockchain technology in transforming the manner in which customers received service.
American Express Quietly Building Its Own PPS System
While everyone else was busy looking at what other companies were doing, American Express went ahead and submitted a patent application for a PPS system to be based on the blockchain technology.
In its filing, it details a system that will use a series of interconnected devices to execute certain actions that are meant to service paying customers. All these transactions are intended to take place in the blockchain. The payments will then take place between the wallets of the sender, and that of the receiver.
The platform to be powered by blockchain technology will be in a position to either accept or decline payment requests made by platform users. All these transactions will take place on the blockchain infrastructure.
In its filing, the financial services giant has also provided details on how its system can be utilized to unlock shared property doors, rented properties, and even hotel rooms. This essentially means that the customer making the payment would be required to use the same device or card to unlock the property. Paying for a service would lead to one being granted access.