Mastercard to upgrade payment processing by using Blockchain

Recently Mastercard made a big announcement that it will be upgrading its payment processing operations for business-to-business transactions. The businesses associated with the company will now be able to use their blockchain technology to make money transfers. This would be possible with the help of their Mastercard Blockchain API that made its first appearance at the Money20/20 Hack-a-thon at Las Vegas.

Many big companies like Google, Goldman Sachs, Citibank, etc., are taking advantage of blockchain technology to manage their processes, and now Mastercard has joined this list.

Impact on the market

This will have a significant impact on the ever-growing market of blockchain technologies. This will also grow the demand for crypto engineers and coders at the partner company levels.

The introduction of blockchain technology in business-to-business transactions will ensure better safety and lesser errors. It will also improve the speed of processing and record management.

About the B2B blockchain technology

The blockchain technology that Mastercard plans to use does not depend on cryptocurrency to work. But it transfers currencies just as Bitcoin does, including complete ledgers. This makes the receiver and sender get an entire record of the transaction with the currency itself. By using blockchain technology, Mastercard transactions have become safer and faster than before.

According to Mastercard, with the use of blockchain technology, the payment process is shared only between the participants of the transactions. With Blockchain, you can be assured that the record of any payment will always be accurate.

Currently, Mastercard plans to use blockchain technology in their business-to-business transactions for customers requiring international payment transfers. With the help of this technology, it would be less expensive for the business to make international payment transfers. When there is an international money transfer, it has to pass through a few banks before it arrives at its final destination.

At each juncture with a bank, there is a fee involved. Mastercard plans that, with the help of this technology, could directly connect both the buyer and the seller. It would reduce not only the transfer fee but also complete the process in a reduced time. Mastercard further says that this technology can help in the movement of more than just money transfers. Another use of this technology could be to track luxury items and pharmaceuticals. The transfer of luxury items like diamonds and costly handbags requires proof of provenance. This is documented evidence about the object that establishes that this object is not altered, forged, reproduced, stolen, or a looted piece.

Blockchain technology is combined with other Mastercard APIs to develop applications, and its software development kits are now available for use in six different languages. If you are an average Mastercard cardholder, this facility to transfer money using the new technology is not available for you. Mastercard now has more than 35 patents on file for the latest cryptocurrency technology. It is now the second Fortune 500 company that uses the latest payment method. It also has an extensive settlement network of more than 22,000 centers that include banks and financial institutions around the world.