American Express is developing a Blockchain system for confirming payments

Payment giant American Express has begun developing its Blockchain system, which automatically assesses transaction risks and determines whether to approve or reject a payment transfer.

Payment giant American Express has repeatedly demonstrated its interest in Blockchain technology. Last fall, the company began developing a B2B payment channel based on Blockchain for instant payment processing. Last month, American Express offered its customers the power of Ripple's xCurrent infrastructure. And now it has filed its own patent application for a blockchain-based system for confirming payments.

In a patent application published by the US Patent and Trademark Office, American Express Travel Related Services describes the use of a Blockchain-based system for automated confirmation of payments. The proposed public key-based system automatically approves or rejects payments. At the same time, the algorithms of the Blockchain system use a sufficient number of factors to evaluate the transaction being carried out. Additionally, the encrypted data includes the transaction amount and the identity of the sender and recipient of the payment. To provide access to the system, users need a digital Blockchain wallet.

The main feature of the system is the processing of payments directly in the Blockchain, without the participation of a third party - banks. The Blockchain system automatically makes the necessary changes to the balance of the transaction participants. The patent application notes that the system allows data to be transferred to a smart device, for the convenience of users, with decryption of transaction data.  

 The potential of the proposed system is very diverse, the company claims, and it will help simplify many everyday tasks. With a smart device or card used for payment and transactions stored on the blockchain, many actions can be performed that require customer identification. Such data can be used for ticketless access to public places or transport, rental housing, car rental, etc. The system will automatically find proof of payment for the service by the client on the Blockchain. 

New ideas for using smart contracts appear almost constantly. And the idea of ​​American Express is not new. In addition, the company did not indicate in detail how it plans to widely implement the innovative system and when it will be finally developed.