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JPMorgan Moves Forward With Blockchain Vehicle Tracking System

JPMorgan Pursues Auto Blockchain System

The wholesale car financing arm of JPMorgan Chase is putting together a plan to finance the creation of a blockchain-based automobile inventory system, The BlockCrypto reported on Friday (Nov. 22).

The inventory system would digitize floor plan financing using the company’s patent-pending ledger-based floor planning methods. The plan also aims to bring greater efficiency to the commercial lending process.

Floor plan lending is a revolving line of credit that lets car dealers borrow against retail inventory. It attaches a car’s vehicle identification number (VIN) to a blockchain and uses telematic and geolocation sensors for real-time identification of inventory on the dealership floor.

“There is the ability to register this unique identifier onto a shared blockchain registry shared by auto manufacturers, finance banks and companies, and dealerships to enable easier tracking and association with floor plan contracts and key attributes related to collateral audit like GPS location,” JPMorgan told The Block.

Currently, the only way to collect data and verify inventory is to have someone physically check a dealer’s lot. Chase’s new DLT application is billed as a “more efficient alternative.” It can also prevent “double flooring,” which is when the same vehicle is used as collateral for more than one bank.

The pilot program to test the solution was successful, Christine Moy, JPMorgan’s blockchain lead, told the news outlet. She added that the company is negotiating with carmakers to build the technology into all new vehicles.

The Quorum blockchain is a private variant of Ethereum developed by JPMorgan that was previously used for abstract financial operations.

The automotive world and the associated culture is undergoing a massive, historic change and a shift in consumer preferences stemming from digital and mobile technology. Cars and trucks are becoming rolling centers of commerce and payments, as ridesharing and other programs are changing the concept of what it means to be a driver, rider and user of transportation in general.

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NEW PYMNTS DATA: HOW WE SHOP – SEPTEMBER 2020 

The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.

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