SBI Ripple Asia and the Japan Payment Card Consortium announced a joint proof of concept (PoC) to fight fraud with blockchain technology, according to an official publication published on November 16th.
According to the press release, the PoC will be conducted on the blockchain platform of R3, Corda, and will aim to prevent the damage caused by fraudulent transactions, allowing real-time sharing of data between the parties using blockchain.
The Japan Payment Card Consortium has nine credit card issuers – including American Express (Amex), Credit Saison and Toyota Finance – and two payment card technology providers as members. SBI Ripple Asia is a joint venture between the Japanese financial services giant SBI Holdings and the blockchain company Ripple, which has worked to advance blockchain solutions for the financial and business sector since its creation in 2016.
Reportedly, Corda was chosen for the PoC because of its privacy and data security setting. The statement outlines that the data in the system must be "shared only with those who" need to know "." Each company has a Corda node and, while each company implements its own security policy, the sharing of data between the nodes is assured by Corda. "
The Japanese IT service provider TIS, a member of the R3 consortium, will develop a secure and scalable information sharing system for the PoC based on Rope.
Although in the PoC phase, information will only be shared between participating card companies. The consortium states that it will consider extending data sharing to a wider range of parts – such as merchants and payment service providers (PSPs) – in the future, in the name of better protection against fraud at the level of industry.
Hewlett Packard Enterprise (HPE) DLT (Mission Critical Distributed Ledger Technology) has been selected as a safe host environment to test the new PoC.
As reported in October, MoneyTap, the consumer-oriented payment app for SBI Ripple Asia, was recently published after successfully obtaining a license from national financial regulators.
Also last month, Cointelegraph reported on Toyota's Japanese automotive production giant, partnering with blockchain advertising company Lucidity to tackle commercial advertising fraud.