In the spirit of data sharing age, SBI Ripple Asia and the Japan Payment Card Consortium recently revealed a progressive joint proof of concept (PoC) hinged on combating fraud using the blockchain technology.
According to a recent published official statement by SBI, the PoC would be conducted on R3’s blockchain platform, Corda. The idea is that, while using blockchain technology to share data between parties, it would also prevent the risk of fraudulent transactions.
The Japan Payment Card Consortium is constituted by nine major credit card issuers which include; American Express (Amex), Credit Saison and Toyota Finance as well as two payment-card technology providers as members. On the other hand, SBI Ripple Asia is a joint venture from Japanese financial services giant SBI Holdings and blockchain firm Ripple working to advance blockchain-powered solutions for the commercial and enterprise sector since 2016 when it was established.
The report outlined that data in the system is to be shared only with those that have a need to know.” Each company will own a Corda node, and while each company implements its own security policy, the data sharing among the nodes is secured by Corda.” Choosing Corda for the PoC must have been induced by its privacy and security set-up.
Combating Fraud with Blockchain
The consortium still maintains the view that it might extend data sharing to a wider range of parties including; merchants and payment service providers (PSPs) sometimes in the future to ensure an industry-wide protection against fraud. But primarily, the PoC stage, information will be shared only between the participant card companies.
The secure host environment chosen for testing this new PoC is Hewlett Packard Enterprise (HPE)’s Mission Critical Distributed Ledger Technology (DLT) Lab.
SBI Ripple Asia’s consumer-focused payments app MoneyTap went live in October following a successful lobby for a license from local financial regulators. Also, in the same month, one of Japanese top car manufacturing giant Toyota partnered with blockchain ads analytics firm Lucidity to combat fraud.
The conclusive part of the press release reads:
“While the payment card industry has been implementing various initiatives related to fintech, the Japan Payment Card Consortium endeavors to build a common platform for cross-industry basic technology research. By studying a new financial infrastructure that utilizes advanced technologies such as blockchain and artificial intelligence (AI), the goal is to improve the operational efficiency of participating companies. In addition, the consortium endeavors to establish an effective settlement environment by improving the user experience, thereby reducing social costs and improving productivity in a cashless society.”