The AmEx patent application was released by the U.S. Patent and Trademark Office on Thursday, outlining that the credit card company’s travel wing, the American Express Travel Related Services Company, looks to use blockchain to facilitate peer-to-peer transfers and payments.
The application states,
“A system for operating a payment network with a blockchain-based ledger may prepare a request to complete a transaction from an account associated with a payer digital wallet for entry on the blockchain. The request may include an amount and payee address associated with a payee digital wallet. The system may also send the request to the blockchain using a blockchain interface. The system may approve or decline the request. The system may further adjust a balance of the payer a balance of the payee to reflect approval of the request. The adjustment may include writing the transaction to the blockchain.”
This means that the blockchain-based AmEx system would determine whether a transaction should be approved or rejected based on various factors and risk analysis. If the payment is approved, the system automatically processes the transaction and adjusts both the payer and payee accounts accordingly.
American Express goes on the suggest that blockchain has the potential to improve several facets of current card payment services 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.”