Mastercard Labs Looks to Adopt Blockchain Use In Effort to Improve Payments Efficiency
Blockchain Technology Adopted by Mastercard In Effort to Improve Efficiency
The research and development sector of Mastercard decided to seek out the support that blockchain technology affords. They want to improve efficiency, and this is just the latest effort in a long line of innovations since it originated six years ago.
Mastercard is presently the second-largest payment processing company globally, which is why it is so important to have the most updated services possible. At their headquarters in Ireland, Mastercard Labs has been investigating the benefits of taking on blockchain, artificial intelligence, and machine learning.
The head of research and development, Ken Moore, spoke with The Irish Times about their work at the Mastercard Labs sector, and how it impacts the whole company. Despite the fact that this sector is usually at a loss, the innovations make it one of the most effective and useful payment processors around.
The lack of funds coming into Mastercard Labs seems almost intentional, since Moore himself said the goal was not to create revenue. He said,
“We build new products for Mastercard globally out of Dublin, so we incur the costs for that in Ireland even though the services we provide are global.”
One of the recent innovations from this team was the QKR app, which was used by firms like Wagamama and Identity Check. The product was helpful for these companies that sought out better identify verification procedures.
The Mastercard Labs division is responsible for 400 workers, though the payment processing firm wants to add another 175 open positions to fill in Ireland specifically. The new hires should include blockchain developers, data scientists, and cloud computing specialists. This wing is one of the most beneficial firms, with Moore saying,
“We’re very much seen as a success story due and are increasingly growing in relevance.”
Even though Mastercard has expressed clear interest in blockchain technology, the CEO does not feel very positive about cryptocurrency as a whole. In fact, early on in 2018, CEO Ajay Banga specifically called cryptocurrencies “junk,” and would not be considered suitable as exchangeable assets. However, based on how the rest of the financial industry has reacted to cryptocurrency, this is hardly a surprise. Banga even alleged that 95% of these types of transactions were involved in drug dealing and pedophilia. Even though there has been a major risk for unsavory activities with crypto, these allegations are far from the truth.