South Korea's biggest credit card operator, Shinhan Card, has obtained a patent for a blockchain-based payment system. The company is the first in the world to have established a credit transaction service using the new record-keeping technology.
With the patent-winning technology, the card firm has established a blockchain-powered credit transaction process that enables various functions, such as setting a maximum spending limit, paying in monthly installments and completing payments between merchants and consumers. "Services using those key functions of credit cards will be extended to the blockchain-based system, a notable advancement from the status quo whereby most blockchain-based services available are limited to cash wiring or user identification for online transactions," a Shinhan Card official said. "We obtained the patent about a year and a half after we initiated a feasibility study including technology reviews. We are seeking measures to make the patent valid in European countries, the U.S., Japan, China, Vietnam and Indonesia," he added.
Shinhan Bank Blockchain Ambitions
Affiliate Shinhan Bank has already made progess on blockchain technology, using a distributed ledger platform to speed up the approval process for loans and mortgages.
Instead of submitting identity, payslips and other important documents for manual verification, the bank will use blockchain to verify such items. Last year the bank trialled a cross-border remittances system for its business customers using Ripple's blockchain.