“Blockchain is an emerging technology and at Mastercard we believe that there is a role for blockchain in the future of commerce.” – MasterCard Inc., Nov 18, 2016.
Barely weeks after announcing two experimental blockchain APIs, MasterCard Inc. (MA - Free Report) yet gain affirmed its focus on the underlying technology backing digital currency, Bitcoin. The Purchase, NY-based payment processing giant has filed for four Blockchain patents.
According to the patent application that was published recently by The U.S. Patent and Trademark Office, Steven Charles Davis and Ashish Raghavendra Tetali have been named as inventors of these applications.
Blockchain Buzz
Blockchain or “digital ledger” has gained popularity for its significant potential to revamp the extensive and complex network of bank payments and other financial settlements. Blockchain is a type of distributed ledger that maintains digitally recorded data with a decentralized network, removing the need for a third party. While Bitcoin was one of the first cryptographic currencies that drew attention in 2009, several other cryptographic currencies are now available.
MasterCard’s Efforts
In the publication, MasterCard noted that the current payment networks and payment processing systems that use conventional currency are not only designed for safe storage and protection of consumer and merchant information but are configured to run other complex tasks including calculations and risk assessments.
It also highlighted the increasing usage of blockchain currencies over traditional currencies driven by consumers focus on confidentiality and security. MasterCard, however, believes that the storage and processing of transactions that use blockchain currencies need improvement.
The patents look for ways and systems to handle authorization, security and processing of blockchain-based transactions. MasterCard is mulling on integrating blockchain-based transactions in its own infrastructures.
The company noted, “Accordingly, the use of traditional payment networks and payment systems technologies in combination with blockchain currencies may provide consumers and merchants the benefits of the decentralized blockchain while still maintaining security of account information and provide a strong defense against fraud and theft.”
Introduces AI to Lower Instances of False Declines
In another move, MasterCard launched artificial intelligence (AI) across its global network offering “a comprehensive decision and fraud detection service.” The service will aid financial institutions improve accuracy of real-time approvals of actual transactions of credit card and cut down false declines.
Ajay Bhalla, president of enterprise risk and security at MasterCard stated, “We are solving a major consumer pain point of being falsely declined when trying to make a purchase.”
Essentially, the AI service promises improved consumer experience while preventing banks and retailers from losing sales.
Bottom Line
As digitization and technology continue to evolve and shape market dynamics, MasterCard is keeping no stone unturned to undertake strategies and innovation to maintain its leading position in the industry. The company remains well positioned for growth, given its continued expansion & digital initiatives. The secular shift to electronic payments from paper-based forms, undoubtedly promises top-line growth for the company.
MasterCard shares have gained 5% year to date, underperforming the 5.9% growth for the Zacks categorized Financial Transaction Services industry. However, estimates for its current year were revised upward by 2.7% over the last 30 days. Given its progress on the fundamentals, the stock should perform well in the quarters ahead.
MASTERCARD INC Price
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
“Blockchain is an emerging technology and at Mastercard we believe that there is a role for blockchain in the future of commerce.” – MasterCard Inc., Nov 18, 2016.
Barely weeks after announcing two experimental blockchain APIs, MasterCard Inc. (MA - Free Report) yet gain affirmed its focus on the underlying technology backing digital currency, Bitcoin. The Purchase, NY-based payment processing giant has filed for four Blockchain patents.
According to the patent application that was published recently by The U.S. Patent and Trademark Office, Steven Charles Davis and Ashish Raghavendra Tetali have been named as inventors of these applications.
Blockchain Buzz
Blockchain or “digital ledger” has gained popularity for its significant potential to revamp the extensive and complex network of bank payments and other financial settlements. Blockchain is a type of distributed ledger that maintains digitally recorded data with a decentralized network, removing the need for a third party. While Bitcoin was one of the first cryptographic currencies that drew attention in 2009, several other cryptographic currencies are now available.
MasterCard’s Efforts
In the publication, MasterCard noted that the current payment networks and payment processing systems that use conventional currency are not only designed for safe storage and protection of consumer and merchant information but are configured to run other complex tasks including calculations and risk assessments.
It also highlighted the increasing usage of blockchain currencies over traditional currencies driven by consumers focus on confidentiality and security. MasterCard, however, believes that the storage and processing of transactions that use blockchain currencies need improvement.
The patents look for ways and systems to handle authorization, security and processing of blockchain-based transactions. MasterCard is mulling on integrating blockchain-based transactions in its own infrastructures.
The company noted, “Accordingly, the use of traditional payment networks and payment systems technologies in combination with blockchain currencies may provide consumers and merchants the benefits of the decentralized blockchain while still maintaining security of account information and provide a strong defense against fraud and theft.”
Introduces AI to Lower Instances of False Declines
In another move, MasterCard launched artificial intelligence (AI) across its global network offering “a comprehensive decision and fraud detection service.” The service will aid financial institutions improve accuracy of real-time approvals of actual transactions of credit card and cut down false declines.
Ajay Bhalla, president of enterprise risk and security at MasterCard stated, “We are solving a major consumer pain point of being falsely declined when trying to make a purchase.”
Essentially, the AI service promises improved consumer experience while preventing banks and retailers from losing sales.
Bottom Line
As digitization and technology continue to evolve and shape market dynamics, MasterCard is keeping no stone unturned to undertake strategies and innovation to maintain its leading position in the industry. The company remains well positioned for growth, given its continued expansion & digital initiatives. The secular shift to electronic payments from paper-based forms, undoubtedly promises top-line growth for the company.
MasterCard shares have gained 5% year to date, underperforming the 5.9% growth for the Zacks categorized Financial Transaction Services industry. However, estimates for its current year were revised upward by 2.7% over the last 30 days. Given its progress on the fundamentals, the stock should perform well in the quarters ahead.
MASTERCARD INC Price
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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