Mastercard Files Patent for Transparent Billing System by IOTA’s Tangle

Mastercard Asia/Pacific has filed a patent for a transparent billing system based on IOTA’s Tangle, by pay-as-you-go system.

By · Aug 27, 2020 . 7min read

Mastercard files patent

On August 20, Mastercard Asia Pacific has filed a patent for a transparent billing system based on IOTA’s Tangle. A recent patent application explains the concept. It is titled “Method and System for Device Micropayment Aggregation based on Tangle Network”. The patent claim proposes a pay-as-you-go system that makes usage of a “clear information storage system and aggregation.” 

IOTA is a distributed ledger designed to record and execute transactions between machines and devices in the IoT ecosystem. The ledger uses a cryptocurrency called mIOTA to account for transactions in its network. IOTA’s key innovation is Tangle, a system of nodes used for confirming transactions.

Mastercard’s Transparent Billing System

Mastercard’s patent application details an approach to billing device usage by a transparent storage system. For instance, the method could be utilized to bill for library or “maker space” devices like computer printers, 3D printers, and photocopiers.

The patent states, various systems recently, depend on coin-operated or prepaid accounts. These systems often lock users into paying for more device usage than they need. By contrast, the proposal would maintain and stores all data related to use. It will store data from user identities to time spent and usage amounts on Tangle. This enables users to pay for precisely what they need with their credit card or another payment service.

Mastercard’s filing says, the fact that this approach is transparent also ensures that no user has taken advantage of it. Following the proposed system, users would be capable of monitoring their usage. Additionally, third parties would be able to audit the payment records. The patent claims that such a system would enhance the normal cost mechanisms usually utilized for shared {hardware} units. 

The essence of Tangle’s Transparent Billing System

The advantages mentioned above encompasses a better diploma of transparency and belief in the system. The benefits include flexibility to watch utilization in real-time and the elimination of charges related to bank cards and different cost techniques. However, the patent doesn’t state how consumers would pay for utilization, solely specializing in the technical implementation of such a system. Given the necessity to document transactions in a distributed ledger, some cryptocurrency-like systems might be required. Thus, restricting cost choices for customers as effectively.

Mastercard was one of the authentic members of the Libra consortium. However, it left the affiliation in October 2019 citing regulatory and business model concerns. Mastercard has been opening up to cryptocurrencies. Earlier, we reported that Mastercard collaborated with Wirex. With this partnership, Wirex can issue credit and debit cards to its consumers. People who hold crypto can make everyday payments using these cards. Wirex’s platform will instantly convert their crypto assets into the local currency.

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