Mastercard has recently come up with a new blockchain system which could possibly simplify business-to-business (B2B) transactions in a high-volume enterprise. This comes as an important advancement on the part of Mastercard who are taking great leaps in the sector of blockchain.
To that end, Mastercard has filed patents for this new system. It has been filed in a series of three patent applications at the US Patent and & Trademark Office (USPTO). These patents were filed way back in March but were made public recently on Thursday, by the USPTO.
21st century witnesses business being conducted on a very large scale and single settlements or individual transactions are not efficient enough to keep up with the times. The patent authors have mentioned in one of the filings that:
“Currently, existing settlement systems often operate using the settlement of individual payment transactions. For example, after a transaction is processed, the issuing bank will transfer funds for that single transaction to the settlement network, which will then forward the funds for that single transaction on to the acquiring bank. Since most businesses are not financial firms, or financially regulated, B2B transactional innovation left payment flows between the parties intact.”
“As a result, 21st century B2B collaboration sits on an unwieldy, unconnected and largely unchanged mid-20th century B2B payments platform. As the number of transactions being processed, and therefore settled, increases, the strain on the processing power of settlement systems and those of financial institutions increases, as well as the number of fund transfers that must occur every day.”
B2B transactions can be executed much more efficiently with the help of this new system and Mastercard really believes in this. The system that they have devised is a uniform payment system that would use blockchain technology for inter-enterprise settlement system.
With the help of blockchain, data can be stored in a comprehensive format and it cannot be tampered with in any manner. It will also be easily accessible by other parties involved in the transaction.
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