BankTech’s article detailed that the members of the Japanese Payment Card Consortium consists of nine credit card guarantors and two payment-card innovation providers, namely, American Express, Aeon Credit, Epos Card, Orient, Credit Saison, TD, JCB, Toyota Finance, Sumitomo Mitsui Card, Sumitomo Mitsu Trust Club, and TIS and Hewlett-Packard Japan.
TID, a part of the R3 banks consortium, is additionally creating a Corda information sharing framework. Data for the proof of concept (PoC) is shared among taking part card companies. The consortium will, in any case, consider sharing data with other industry partners such as traders and payment service providers.
On the off chance that the information is shared with the correct scope, content and stakeholders, the PoC can ideally offer assistance in preventing fraud.
The consortium plans to utilize blockchain innovation and artificial intelligence to boost and improve the operational productivity of the partaking companies. It intends to make an effective settlement ecosystem by progressing client involvement, expanding productivity and diminishing social costs in the cashless society of Japan.
Japanese payment card companies are not the only organizations curious about trialing blockchain as a fraud control device. Swift India, recently collaborated with MonetaGo to create blockchain innovation to avoid fraud in Indian banks. The plan is to supply banks with a decentralized ledger system to extend the security and proficiency of their financial products and services.
While many banks and payment providers test blockchain technology to combat financial fraud, Raconteur, a content publisher based in London for leading journalism brands, is skeptical of blockchain technology. Although the company has recognized that blockchain technology can be a tool for preventing fraud, it should definitely not be announced as a silver bullet. Unfortunately, blockchain technology is just as safe and fraudulent as the people behind it.
Eric Wall, a cryptocurrency and blockchain lead at Cinnober said “Any information processing system that has bad input provide bad output. The blockchain can only be aware of the inputs, not the reality.”
Wall added that the blockchain would still validate the data if we had the authority to enter bad data. Although blockchain technology can transform existing processes, it relies heavily on the real world and trusted information and authorization sources. If data and information can be corrupted, the process can be corrupted.