Many payment companies have started to implement the blockchain technology to their systems such as American Express to be more competitive for transaction speed.
Thursday, in a patent application issued by the U.S. Patent and Trademark Office, the American Express Travel Related Services Company said that it will use transaction request on a blockchain-based technology, which will ease peer-to-peer payments.
Basically, when someone wants to make a payment, if the transaction is approved, the payment executes or if it is rejected, the payment is put on hold. After that, the technology adjust the balances of each account autonomously.
Also, an intermediary in your transactions such as a bank wouldn’t be necessary anymore since it would be run by the blockchain.
Instead of having a bank account, users would only have to create digital wallets in which funds would be taken or received depending if you make a payment or you receive one.
The global payment giant also considers that blockchain has many advantages over the present card payment networks and other services that are not accessible with the current system.
“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.”