Japan Payment Card Consortium has launched the proof of concept (PoC) for sharing fraud information via blockchain technology.
SBI Ripple Asia is serving as the secretariat the group, which is comprised of credit card issuers American Express International, Aeon Credit Service, EPOS Card, Orient Corporation, Credit Saison, JCB Co, Toyota Finance, Sumitomo Mitsui Card, and Sumitomo Mitsui Trust Club. Also part of the consortium are payment card technology providers TIS and Hewlett-Packard.
These companies are working together to prevent the spread of damages which are caused by fraudulent transactions. To do this, they are sharing information in real-time through blockchain technology. This PoC is to be completed through R3’s blockchain platform Corda.
Corda is a blockchain solution which protects data by only allowing those that ‘need to know’ can access it. Each of the companies participating will receive a Corda node, and while each company will implement its own security, all nodes are secured by Corda.
For this PoC, information is only going to be shared via those companies participating, but the group is hoping to share data with others, including merchants and payment service providers, in the future.
The consortium is using the HPE Mission Critical Distributed Ledger Technology (DLT) Lab to test its solution. DLT Lab lets firms try-out their blockchain applications in a hosted environment.
Alongside lowering the risk of fraud, the consortium is hoping to improve customer experiences through reduced social costs and improved productivity in a cashless society.
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