SBI Ripple Asia and the Japan Payment Card Consortium intend to combat fraud using blockchain technology.
SBI says the proof of concept (PoC) will share information together with nine credit card issuers and two payment-card technology providers.
These issuers are American Express, Aeon Credit, Epos Card, Orient, Credit Saison, TD, JCB, Toyota Finance, Sumitomo Mitsui Card, Sumitomo Mitsui Trust Club; as well as TIS and Hewlett-Packard Japan.
The companies will start sharing information on a real-time basis among related parties using blockchain. The PoC will be conducted on R3’s blockchain platform, Corda.
TIS, a member of R3’s partner ecosystem, will develop an information sharing system on Corda.
For the purposes of the PoC, information will only be shared among the participating card companies. However, in the future, the consortium will also consider sharing information with others, including merchants and payment service providers (PSPs).
The consortium will utilise the HPE Mission Critical Distributed Ledger Technology (DLT) Lab as the test environment, which is provided by a Corda-optimised HPE Integrity NonStop server.
By using blockchain, the consortium aims to improve the operational efficiency of participating companies. It also seeks to establish an effective settlement environment by improving the user experience, thus reducing social costs and improving productivity in a cashless society.