Korea’s top credit card company, Shinhan Card has been granted a patent for developing a blockchain payment system. The Korea Times reported on Monday that Shinhan Financial Group has said that it has developed a world’s first service based on blockchain technology. The technology offers a credit card functionality which includes setting spending limits and making monthly installments and payments to businessmen. 

An official from the credit card company said to the Korea Times that:

“Services using those key functions of credit cards will be extended to the blockchain-based system, a notable advancement from the status quo whereby most of the blockchain-based services available are limited to cash wiring or user identification for online transactions.”

According to the report, the patent can guide the cardless credit transactions that would enable the users of the service to make payments by using applications on mobile devices. This development would disrupt the conventional card system which is based on three intermediaries: the credit card company, payment gateway, and a value-added network (VAN) service provider.

The official from the Shinhan Card company said that they obtained the patent after a year and a half following the study they initiated which included technology reviews. 

According to the report, this initiative could result in a decrease in the network of three intermediaries. The value-added networks are service providers that connect the credit card companies and competent stores to validate and approve the transactions. 

Shinhan Card Co. Ltd is counted as Korea’s biggest and world’s top-five credit card company. The company has headquarters in Seoul, South Korea and is in partnership with Shinhan Capital and in an affiliate of Shinhan Financial Group. The company was established in the year 1990 and is licensed by Shinhan Bank. The company introduces a technology of sending virtual one-time card numbers in 3-D secure for Visa’s customers’ security. 

Earlier it was reported that a board of major South Korean firms has partnered to inaugurate a blockchain-based mobile identification system in the year 2020.

Do you think that blockchain technology can bring about a total transformation in our lives? Today, blockchain is being also employed by telecom companies and food chains. What do you think about the future this technology holds?