By Landon Manning
Shinhan Card, the largest credit card company in South Korea, has acquired a patent for a blockchain-based payment system to be incorporated into its offerings.
TheKorea Timesreported on this development on July 15, 2019, describing some of the plans that the company has going forward. According to a Shinhan official, this patented new system represents a “notable advancement from the status quo whereby most blockchain-based services available are limited to cash wiring or user identification for online transactions.”
Instead of deploying the blockchain protocol for these specific uses that may be scarcely relevant to the average customer’s experience, the Times stated that this distributed ledger-powered transaction process will involve features such as “setting a maximum spending limit, paying in monthly installments and completing payments between merchants and consumers.”
The report further claimed that the specific choice of these features may help supplement the development of cardless transactions on the Shinhan network in the future. In particular, the supported functionality for direct merchant/customer transactions will allow app-to-app purchases over mobile devices to take place entirely using the blockchain network.
The decision to enable a maximum spending limit will also play into this strategy: It will allow users to comfortably hook up their devices to make purchases on this network, without the need for a middleman to verify and approve transactions, as well as granting customers the knowledge that any possible fraudulent activity cannot exceed these predetermined spending limits.
Although Shinhan Card is primarily based in South Korea, the interviewed official gave users reason to remember that this firm is also one of the largest credit card companies worldwide. Now that the patent for this revolutionary new model has cleared South Korean regulators, Shinhan Card is “seeking measures to make the patent valid in European countries, the U.S., Japan, China, Vietnam and Indonesia,” the official claimed.
A successful, wide-scale implementation of this technology in South Korea alone could force credit card companies worldwide to innovate their own use of distributed ledger technology to remain on the cutting edge.