MasterCard will be exploring the use of public blockchain to securely verify payment cards at the point of sale, according to recently published documents. The payment company has presented a transfer and recovery process to validate the payment credentials of users on a blockchain.
The document shows that the bidirectional method first encodes an image of a card and
then saves it in the blockchain after an encryption with a public and private key. After a
request for recovery when a payment is made, the system will use the acquired private
keys to solve the captcha and thus be able to verify it.
With the integration of this system at the point of sale, MasterCard affirms that the
transactions will be much safer, since it will not be necessary to physically present a card, and thus users should not worry about their payment credentials being stolen.
MasterCard issued an official statement, saying:
“The transaction can be carried out by displaying a machine-readable code on the point-of-sale device, which can also prevent fraud and data theft, since the reading of said code can be more easily controlled by means of the control of the underlying screen. It shields easily and often darkens when it’s in a pocket or purse.”
This project demonstrates an obvious effort on the part of MasterCard to use a public
blockchain to improve a common problem with their credit card business.
Around $2 billion in credit card theft is reported globally, each year. MasterCard is also exploring solutions for this issue potentially utilizing this technology to allow consumers to transmit their travel itineraries and requests to merchants.
by Samuel Paz