American Express has reportedly filed a patent related to faster payments and blockchain technology, reports in CoinDesk said.
The U.S. Patent and Trademark Office released the patent application filed by American Express Travel Related Services Company, the payment technology firm’s travel unit, which outlines the use of blockchain technology to accelerate payments between two parties.
The filing describes a blockchain solution to receive requests for payment, which would then be approved or rejected, a process that would include risk analysis, reports said. If approved, the platform would automate processing and adjust accounts on both ends of the transaction.
The solution would require both payer and payee to create a blockchain-based digital wallet, enabling payments to occur on the blockchain platform itself rather than via a third-party institution.
Reports noted that American Express’ filing emphasizes the potential for blockchain to enhance existing card networks.
“A payment network based on peer-to-peer payments may be used to facilitate most functions of traditional card payment networks and to enable additional services and functionality,” the document stated.
But the ongoing volatility of bitcoin, coupled with the fact that blockchain is a public ledger, are two barriers to American Express adopting such a solution, the company said.
American Express has been exploring blockchain technology for some time. Last November, the company joined blockchain network RippleNet to explore the use of blockchain technology for faster, more efficient B2B payments.
“We’ve already seen evidence that blockchain technology is playing a transformational role in the way customers are served,” said Greg Keeley, executive vice president of Global Corporate Payments at American Express, in a statement at the time. “Not only does this partnership with Ripple help decrease the time it takes for international transactions to be processed, it can make our transactions more effective for our customers.”