SBI Ripple Asia, Japan Payment Card Consortium To Combat Fraud Using Blockchain

News | November 26, 2018 By:

SBI Ripple Asia, the Asia-Pacific partnership of SBI Holdings and blockchain firm Ripple, and the Japan Payment Card Consortium will be conducting a joint proof of concept (PoC) to combat fraud using blockchain.

The Japan Payment Card Consortium, announced in December 2017 by SBI Ripple Asia, include nine major credit card issuers – American Express, Aeon Credit, Epos Card, Orient, Credit Saison, TD, JCB, Toyota Finance, Sumitomo Mitsui Card, Sumitomo Mitsu Trust Club – and two payment-card technology providers, TIS and Hewlett-Packard Japan. The consortium’s goal is to establish a common foundation for the use of blockchain technology. It also wants to establish an effective settlement environment by improving the user experience, thereby reducing social costs and improving productivity in a cashless society.

The PoC, which will be conducted on R3’s Corda blockchain platform, will aim to prevent the spread of damages caused by fraudulent transactions by sharing information on a real-time basis among related parties using blockchain. Each company will own a Corda node, and while each company implements its own security policy, the data sharing among the nodes is secured by Corda.

TIS, a member of R3’s partner ecosystem, will develop a highly secure, convenient and scalable information sharing system on Corda. Hewlett Packard Enterprise (HPE)’s Mission Critical Distributed Ledger Technology (DLT) Lab has been chosen as a secure host environment for testing the new PoC.

“The HPE Lab enables firms to try out their applications in a secure hosted environment to see how they may work,” SBI Ripple Asia said. “This test environment is provided by a Corda-optimized HPE Integrity NonStop server. By enhancing availability and scalability with the capabilities of NonStop OS, clients can experiment in the same environment as the core systems of the card industry that require high quality online transaction processing.”

During the PoC, information will only be shared among the participating card companies. However, in the future, the consortium will consider sharing information with a wide range of parties, including merchants and payment service providers (PSPs).

“By sharing information within the appropriate scope and content of each business entity, the goal of the PoC is to prevent the spread of fraud,” SBI Ripple Asia said. “The payment card industry is also expected to use the technology not only for sharing information and preventing fraud, but also for identifying customers, issuing local currencies, and point management etc.