Shinhan Card, South Korea's biggest
credit card company, has been recently granted a patent for a blockchain-based
payment system. According to the reports, the company has developed a
blockchain-powered credit transaction process that offers credit card
functionality along with setting spending limits, making monthly installments,
and carrying out payments. On this achievement, the company's official stated
that the services using the key features and functions of credit cards would be
extended to this blockchain payments system. The official further mentioned
that the blockchain payments system is a noteworthy advancement from the status
quo, where most blockchain-based services were restricted to cash writing or
user identification of online transactions.
The company has patented the
blockchain system about 18 months after carrying out a feasibility study, which
examined how efficient the technology would be in offering the kind of
functionality sought initially.
As per the reports, the patent could
soon permit cardless credit transactions that would see many users of this the system in making payments via apps on their smartphones. With such kind of
development, the traditional card system based on three intermediaries, namely,
the credit card firm, value-added network service provider (VAN), and the
payment gateway would be disrupted immensely.
This technology has come on the heels
of a new platform set up by the parent company to the Shinhan Card, known as
Shinhan Financial Group. This year in May, they had unveiled a new
blockchain-based platform speeding up the loan process by verifying the
necessary terms to approve credit lending.
Shinhan Card is now expected to expand
the patent beyond South Korea and has already filed a Patent Application the US, Europe, Vietnam, China, and Indonesia.
However, the status of those patents at this point is still unknown.
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