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Mastercard keeps searching for ways to provide a better service, trusting in the blockchain to reach this goal.
The use of blockchain technology may provide a solution to transcend payment systems towards a more globalized and faster environment.
The rising number of fintechs and blockchain companies around the world is an important sign of the imperative needs to innovate on a market as complex and critical as the financial one.
With a large number of patents embracing Distributed Ledger Technologies, Mastercard relies on blockchain as a powerful business tool.
One of the most critical applications of blockchain technologies is identity verification systems. In an application published by USPTO it is easy to see that Mastercard seeks to combat false identities through a blockchain system that verifies information much eficiently and faster while avoiding irregularities.
The use of a blockchain for the storage of identity and credential data may provide for an immutable storage of such data that can provide an accurate verification thereof and also prevent the fabrication of such data.
The other important aspect in which its executive team has focused on is – obviously – the consolidation and processing of payments.
For this, sources close to the company had assured that they are studying the possibility of using a blockchain to facilitate interbank payments.
During 2017 the Mastercard team began experimenting with the Ripple network to process payments. The experience was satisfactory.
However, given the importance of this famous company, the margin of error must be close to zero. Perhaps this extreme caution is the main obstacle to using blockchain in transactions within the Mastercard platform.
It is also important to note that Mastercard recently started a recruitment process to create a section dedicated exclusively to the development of blockchain technologies.
Mastercard Has Competition
Mastercard is not the only company that has been enthusiastic about the use of DLTs to enhance the industry. VISA; its biggest competitor, has also made some progress in this area.
On late 2017, Visa announced a B2B solution that used Blockchain Technologies to improve efficiency and transparency on cross-border payments.
In an interview for Bloomberg, VISA’s CFO, Vasant Prabhu mentioned that VISA was “very excited” about Blockchain Technologies.
However, it is important to note that when it comes to cryptocurrencies, Mr. Prabhu’s opinion is completely the opposite:
Every crook and every dirty politician in the world, I bet, is in cryptocurrency.
A big number of criptocurrency-backed credit cards and exchanges used to rely on the Visa platform; however, Visa and Mastercard have used several tactics to discourage their clients to do so.