The Future Coin

Bitcoin

$17,080.92

BTC 0.96%

Ethereum

$515.64

ETH 0.64%

XRP

$0.56

XRP 3.37%

Litecoin

$70.76

LTC 3.10%

EOS

$2.88

EOS -0.42%

  • News
    • Bitcoin News
    • Ethereum News
    • Ripple News
    • Litecoin News
    • Altcoin News
    • Blockchain News
    • Business News
    • Technology News
    • Policy & Regulations
  • Markets
    • Market News
    • Market Analysis
    • Price Indexes
    • Top Cryptocurrencies
    • Heatmap
  • Opinion
  • Cryptopedia
    • Explained
    • Bitcoin101
    • Ethereum101
    • Bitcoin Cash101
    • ICO101
    • Ripple101
  • Press Releases
No Result
View All Result
The Future Coin
No Result
View All Result
Home Blockchain News

Blockchain to Secure Contactless Payments

by The Future Coin
May 7, 2020
in Blockchain News
0
Blockchain to Secure Contactless Payments
152
SHARES
1.9k
VIEWS
Share on FacebookShare on Twitter

Blockchain, which keeps track of all transactions, makes an excellent tool for financial services, particularly contactless payments.

The global payment industry has seen massive growth in recent
years, be it mobile payment apps like Alipay or online payment systems like
PayPal. This growth is credited to technologies like Near Field Communication and Radio Frequency Identification, which enable
payment devices to communicate information and hence, have made contactless
payments possible.

These technologies work by using an embedded chip in a
device, which then allows instant payments by waving or tapping it over a
reader. The communication between reader and device is done over radio waves,
which means that both should be in proximity in order to make the transaction
occur.

See also: How Companies are Using Blockchain to Transform Business

Contactless payment devices include smart cards, debit and
credit cards, smartphones, key fobs, and others. While this method is fast and
easy, it still has security loopholes. The main challenge is that there isn’t
any way to verify merchant outlets and also find out if they were exposed to
risk in the past. Hence, a customer may fall victim to a cyber-criminal where they
steal their financial information by intercepting wireless signals from their
device.

Enter Blockchain
Technology

Blockchain, a distributed database system, records and
maintains a list of transactions that take place in real-time. Records on
blockchain are time-stamped with high-level data encryption, hence making them
indisputable and tamper-resistant.  For
instance, imagine you have a cash note which comes with an encrypted data ledger.
It carries the details of every transaction it has done during its entire
lifetime. When you receive the note, you have the entire transaction history
with you. You can make a decision whether the person handing over the note to
you is worth transacting with or not. This feature is what blockchain basically
provides. It provides an additional layer of trust and security to ensure that
both parties come out safe and satisfied with a transaction.

When paying through a blockchain contactless payment system,
customers can find out if the merchant they are dealing with has been fair or
fraudulent in past transactions. This is possible because the system will
record all instances of fraud by the merchant and share this data with new
customers to keep them warned. Since the data is stored in an encrypted ledger,
the merchants are unable to change it.

In a similar way, merchants can also identify a fraudulent
customer and take precautions. Hence, a system that is powered with blockchain
contactless payments does not give an upper hand to any of the parties.

In addition to ensuring better security, blockchain can also
make efficient payment processes possible. According to a report by Deloitte,
the integration of the two technologies reduced overall costs for institutions.
It is further very likely that new advantages of blockchain will become known
with the advancement in technology.

Security Benefits
of Blockchain for Mobile Wallets

Secure Transactions

The foremost challenge mobile payments face is security, and
that is where blockchain provides the biggest benefit. It can prevent
price-scoring, duplicate spending, and online fraud. Similarly, with cash and
check being a thing of the past, soon, plastic cards are going to take a
backseat with mobile wallets taking the front place. But since mobile wallets
face a big challenge of overcoming security threats, blockchain can cater to
its safety features such as multi-signature for buying verification.

Blockchain can authorize, authenticate, and audit the data.
With its decentralized nature, it also eliminates the need for a third party
and doesn’t have a single point of failure. It works as a shared, public, and
universal ledger and creates confidence and consensus between two parties that
are directly communicating.

Peer-to-Peer Lending

Peer-to-Peer lending is the latest trend in the payment
industry. However, we regularly hear stories of online fraud where people send
money by trusting an individual who promises to deliver a good or service and
then disappears. With the help of blockchain, borrowers can directly take a
loan from the lender through their mobile devices. This greatly reduces the
hassle and bypasses the paperwork involved in traditional banking systems.
Additionally, the inherent trust factor associated with blockchain also helps
protect people for their blockchain transactions with the help of smart contracts.

Integration with Smart
Devices

Other than smart phones and tablets, mobile payments can now
be done with IoT devices such as watches, rings, and bracelets. Using
blockchain, a user can save their payment information in any smart device
without having to worry about fraud.

Other Applications of
Blockchain

Faster Payments

With mobile wallets, the users naturally have an expectation
for transactions to occur instantly, which is generally not the case. It
usually takes time for a transaction to be successfully completed. With
transactions occurring over blockchain platform, all transactions can be processed
much faster across the borders.

Reward Programs
Management

Mobile is successfully being used as a platform to manage
rewards. Blockchain technology can take it from here to the next level and
improve the points trading process. Since all transactions are stored in a
public ledger, businesses can check and monitor how the points are traded,
which is not easy for them at present.

Conclusion

At the core, blockchain serves as a complete record book by
keeping track of all transactions. This makes it an excellent tool for
financial services, particularly contactless payments. With all this taking
place so swiftly, we are left to wonder if blockchain is the future of the
payment industry.



Source link

EDITOR’S CHOICE

CoinSwitch Kuber allows to gift bitcoin to your friends and family

Latest News 2020: Fintech blockchain Market by Coronavirus-COVID19 Impact Analysis With Top Manufacturers Analysis | Top Players: AWS, IBM, Microsoft, Ripple, Chain, etc.

Should you invest in Bitcoin – and how to do it

Binance U.S. Users Get Eviction Notice Again - Exchanges

What is blockchain and can it really help estate agen…

Stakes are higher for Metro Detroit small businesses trying to survive the pandemic

Best Pick For You

News

  • Altcoin News
  • Bitcoin News
  • Blockchain News
  • Business News
  • Ethereum News
  • Litecoin News
  • Ripple News

Features

  • Market Analysis
  • Opinion
  • Explained
  • Policy & Regulations
  • Top Cryptocurrencies
  • Technology News

Market Tools

  • Market News
  • Price Indexes
  • Bitcoin Price Index
  • Ethereum Price Index
  • Bitcoin Cash Price Index
  • Litecoin Price Index
  • Monero Price Index
  • HeatmapPartner

Cryptopedia

  • Explained
  • Bitcoin101
  • Bitcoin Cash101
  • Ethereum101
  • ICO101
  • Ripple101

© 2020 Coingraph

No Result
View All Result
  • News
    • Bitcoin News
    • Ethereum News
    • Ripple News
    • Litecoin News
    • Altcoin News
    • Blockchain News
    • Business News
    • Technology News
    • Policy & Regulations
  • Markets
    • Market News
    • Market Analysis
    • Price Indexes
    • Top Cryptocurrencies
    • Heatmap
  • Opinion
  • Cryptopedia
    • Explained
    • Bitcoin101
    • Ethereum101
    • Bitcoin Cash101
    • ICO101
    • Ripple101
  • Press Releases

© 2020 Coingraph

Login to your account below

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
bitcoin
Bitcoin (BTC) $ 16,944.07
ethereum
Ethereum (ETH) $ 510.27
ripple
XRP (XRP) $ 0.550857
tether
Tether (USDT) $ 1.00
chainlink
Chainlink (LINK) $ 12.42
bitcoin-cash
Bitcoin Cash (BCH) $ 263.75
litecoin
Litecoin (LTC) $ 69.26
stellar
Stellar (XLM) $ 0.202962
cardano
Cardano (ADA) $ 0.143916
polkadot
Polkadot (DOT) $ 4.70
binancecoin
Binance Coin (BNB) $ 28.15
bitcoin-cash-sv
Bitcoin SV (BSV) $ 160.96
usd-coin
USD Coin (USDC) $ 1.00
eos
EOS (EOS) $ 2.85
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 16,956.24
tron
TRON (TRX) $ 0.028921
monero
Monero (XMR) $ 115.39
tezos
Tezos (XTZ) $ 2.23
nem
NEM (XEM) $ 0.183530
cdai
cDAI (CDAI) $ 0.020899
okb
OKB (OKB) $ 5.19
crypto-com-chain
Crypto.com Coin (CRO) $ 0.063288
leo-token
LEO Token (LEO) $ 1.35
filecoin
Filecoin (FIL) $ 29.84
cosmos
Cosmos (ATOM) $ 5.26
neo
NEO (NEO) $ 16.80
dai
Dai (DAI) $ 1.00
dash
Dash (DASH) $ 95.80
huobi-token
Huobi Token (HT) $ 4.05
vechain
VeChain (VET) $ 0.014219
iota
IOTA (MIOTA) $ 0.305905
celsius-degree-token
Celsius Network (CEL) $ 2.20
zcash
Zcash (ZEC) $ 70.70
ethereum-classic
Ethereum Classic (ETC) $ 6.16
aave
Aave (AAVE) $ 59.94
uniswap
Uniswap (UNI) $ 3.29
yearn-finance
yearn.finance (YFI) $ 22,756.00
binance-usd
Binance USD (BUSD) $ 1.00
waves
Waves (WAVES) $ 6.42
theta-token
Theta Network (THETA) $ 0.594608
compound-ether
cETH (CETH) $ 10.22
havven
Synthetix Network Token (SNX) $ 4.01
omisego
OMG Network (OMG) $ 3.53
maker
Maker (MKR) $ 511.45
compound-usd-coin
cUSDC (CUSDC) $ 0.021316
ontology
Ontology (ONT) $ 0.533389
uma
UMA (UMA) $ 7.56
dogecoin
Dogecoin (DOGE) $ 0.003296
compound-governance-token
Compound (COMP) $ 103.64
paxos-standard
Paxos Standard (PAX) $ 1.01