What’s Going On?
Financial services heavyweight American Express has filed a patent for a blockchain-based Proof of Payment system.
Why Does It Matter?
The proposed system would automate proof-of-payments by encrypting payment data on a new, dedicated blockchain, reported Cointelegraph. The data stored on the blockchain would include the merchant’s identifying information and transaction amount.
What’s At Play Here?
As the third-largest payment processor in the United States by transaction volume, American Express’s new Proof of Payment (PoP) system could see more than $400 billion in blockchain payments processed every year in the US alone, reported CryptoSlate.
American Express says that data on the new blockchain can be used to “unlock a hotel, rental or shared economy property door using the card…to look up proof of payment on a blockchain,” reported CoinDesk. A decision is yet to be taken on whether the AmEx blockchain system will be hosted on a private, public or consortium network.