MasterCard to Start with Blockchain Payments

• Toshendra Kumar Sharma
• May 15, 2018

2018 is talking all about latest development in the field of Blockchain Technology. Things have changed, and so has the perception towards Blockchain Technology. We now have many nations, some big names in the business showing a great inclination towards the use of Blockchain and make it a part of mainstream operations. Another name which got itself in the list of propagators of Blockchain is MasterCard. The company is a big name when it comes to money exchanging platform and is very popular on the global front. Use of Blockchain for creating a transaction platform by MasterCard shows that the company has some serious intentions to use this technology as a part of their money transaction work.

Last year, MasterCard filed a patent for prompt payments using Blockchain Technology. Visa followed suit, and there are many others in the queue. An important point to note here is that slowly and steadily Blockchain is increasing its foothold in some of the most important industries.

What makes Blockchain indispensable?

If you are wondering what all this is because of the spur of the moment then let me break the ice, Blockchain is a leading Technology, with its all pros and cons, it has become the hotspot of new age growth and development.

There are various reasons which make it such an important concept which I will be highlighted later in the blog. But, for now, let’s understand, what is Blockchain and what are its key features which make it so popular.

One minute recap on Blockchain –

It is the digital distributed ledger. It is the underpinning technology for Bitcoin and many other cryptocurrencies, however, now its uses have expanded, and it finds application in various other fields. All the transactions on blockchain are unchangeable and unalterable. Moreover, it becomes effortless to trace this information and find out the source of the same. An important point to note about Blockchain is that it is immutable and is present in chronological order.

Key features of Blockchain Technology-

Here are key elements of Blockchain which makes it such a big success :

1. Decentralization.
2.  Unchangeable data.
3.  Easy to track.
4.  Transparent.
5.  Safety and Security.

These features have attracted many companies including MasterCard.

What is MasterCard’s master plan about Blockchain?

Any innovation is a result of the current need and gap.  Today there is an immediate need to come up with a system which can ensure safe and secure transaction with the safety of customer’s data.  MasterCard’s new patent on Blockchain is an excellent platform for money transaction. It will guarantee convenience to both customer and the merchants.

MasterCard’s Blockchain solution comes as an innovative way for the consumers and business to transact. It provided payment solutions which meet the need of every financial institution and their end-consumer.

To make sure that this platform runs seamlessly the company has tested and validated its Blockchain. It initially targets to use this platform for B-2-B vertical. The intention behind the development of MasterCard Blockchain is to address the problems with the current technology like transparency, challenged and cross-border transaction fees.  This technology will complement MasterCard’s existing functionalities like virtual cards, Vocallink, MasterCard Send to facilitate the cross-border transactions.

Key features of MasterCard Blockhian

Here are the key differentiators of the new technology :

• Privacy – Privacy is the key feature which any business might look at while choosing online transaction method. The transaction details on MasterCard Blockchain is visible to the participants, but at the same time, it is entirely auditable.
• Reach – This technology is integrated into the company’s payment network which includes 22,000 financial.
• Flexibility – This is a highly flexible technology, people can use the Blockchain API’s along with a broader suite of MasterCard’s APIs which makes it a power technology. Software development kits are available in six different languages to make the use of this API even easy.
• Scalability – Ensuring high-speed commercial transaction is the prime focus of MasterCard Blockchain.

The crux of the matter is that MasterCard Blockchain is an excellent platform for money transactions. Currently, the company plans to use it form commercial and business-to-business transactions, but its successful performance will soon make it launch the same for business-to-customer transactions.  The fact of the matter is that Blockchain is the Technology of the future and the next big thing.