B2B Payments

Amex Files Another Blockchain Payments Patent

American Express has filed another patent related to blockchain-powered payments, CCN reported.

The filing relates to blockchain-based proof-of-payment technology, marking the latest in a string of blockchain investments for American Express.

The patent application, filed with the U.S. Patent and Trademark Office on Thursday (July 12) relates to technology that will “receive a payment confirmation including a transaction amount and a merchant identifier,” powered by blockchain. The record could be linked to a “public key” associated with that merchant ID, the filing explained, and could “generate a proof-of-payment payload” including the ID and payment amount. The information would be encrypted and stored on a blockchain.

Reports explained that the filing describes a solution in which payments can be approved or declined on a blockchain, with approved payments occurring via digital wallets. American Express offered the example of unlocking a hotel or rented property door using the same device used to pay for that booking. Blockchain technology would verify the card or mobile payment device used to pay for the booking, and turn that device into one that unlocks a door.

Last March, American Express filed a different patent application via its American Express Travel Related Services Company unit. That application relates to using blockchains to accelerate payments between two parties, again involving payment request approvals or denials. The filing describes a solution that automates risk analysis, processing and account adjustment, and facilitates transactions for both payer and payee when they use a blockchain digital wallet.

While the firm’s latest patent filing signals American Express’s interest in B2C applications of blockchain, the company is also exploring the technology for B2B payments. Last year the company joined RippleNet to power real-time B2B payments via Ripple’s blockchain technology. The firm was also named a Premier Member of the Hyperledger Project as it continues to explore the use of blockchain for enterprise-grade, open-source solutions.

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