The US Patent and Trademark Office released the patent application filed by American Express Travel Related Services Company, the payment technology company’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. 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.
More than that, reports noted that American Express’ filing emphasizes the potential for blockchain to enhance existing card networks.
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, according to the company.
American Express has been exploring blockchain technology for some time. In November 2017, the company joined blockchain network RippleNet to explore the use of blockchain technology for B2B payments.
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