Blockchain is in, it offers a large menu of better, promising ledger service for the world.
Enough reason why it successfully penetrated big industries and now the latest “believer” is the world front runner financial provider, MasterCard.
Through its official announcement, the financial service giant is offering its clients a blockchain-capable payment option for business-to-business transactions.
Considered as pillar in the financial services sector, credit cards were the first cashless payment option made available to the public and now, one of the leading financial services firms in the world has decided that it’s time for credit cards to get involved in blockchain technologies.
MasterCard on Friday announced that it’s opening up access to a blockchain-based business-to-business (B2B) payment service under a new option called the “MasterCard Blockchain API.”
The announcement was made during the Money 20/20 Hackathon in Las Vegas this past weekend after testing and validation had been completed, this service is slated to become available to customers this week.
“MasterCard’s blockchain solution provides a new way for consumers, businesses and banks to transact and is key to the company’s strategy to provide payment solutions that meet every need of financial institutions and their end-customers,” the company said in a press release.
The financial leader’s move comes as a bit of a surprise, as MasterCard previously issued a blanket rejection of Bitcoin.
Still, MasterCard’s blockchain service heralds what Ethereum co-founder Vitalik Buterin described to be blockchain’s potential to replace credit cards. Instead of being taken over by blockchain technologies, however, MasterCard decided to embrace the movement.
Asked on what could blockchain help MasterCard, it is known that as a decentralized digital transaction ledger, blockchain offers MasterCard users a more private and secure option for making transactions, one that is both easily scalable and flexible.
As of posting, the new blockchain API builds on MasterCard’s existing payment network, which covers some 22,000 financial institutions, and also expands blockchain’s capability to handle transactions.
According to some report, the decision also adressess some of the challenges that B2B schemes typically have, which include “speed, transparency, and costs in cross-border payments.”
“By combining MasterCard blockchain technology with our settlement network and associated network rules, we have created a solution that is safe, secure, auditable and easy to scale,” Ken Moore, MasterCard Labs EVP, said in the press release.
“When it comes to payments, we want to provide choice and flexibility to our partners where they are able to seamlessly use both our existing and new payment rails based on the needs and requirements of their customers,” Moore added.