American Express develops a blockchain system for acceleration of transactions
The international payment giant American Express actively studies opportunities of blockchain technologies to increase the speed of transactions. Its patent application was submitted by AE Travel Related Services Company specializing in the travel industry.
The document published on the website of the United States Patent and Trademark Office, describes the method within which the request for payment are firstly sent to the special blockchain-system which algorithms define either to approve or reject the transaction. The set of factors is used for the assessment, including risk analysis.
If the payment inquiry gets an approval, then the system automatically processes transaction, making corresponding changes to balance of the sender and the recipient. For access to the system, users will need to create digital blockchain wallets. Thus, all payments will be directly processed in blockchain, passing the third parties like banks.
The P2P-payments made by means of blockchain are also mentioned in the patent. At the same time volatility of the price of bitcoin and the fact that the first cryptocurrency is based on the public distributed register are the main reasons for which this network doesn’t meet the requirements of American Express.
“The payment network based on the P2P system can perform the majority of functions of traditional systems of payment by cash cards and also expand a range of available services and functions.”
— the document says.