JPMorgan aims to expand use of blockchain to improve payment systems

The company has developed a function for verifying in real time whether a payment was being transferred into a valid account

Reports confirm that JPMorgan Chase is planning to expand its deployment of blockchain technology for improving the payment system of the banking industry, and also to encourage FinTech companies to try and develop the platform further.

Apparently, through this platform, banks are allowed to resolve any issues with compliance fast, as these can lead to delay in payments by weeks. In the previous year, it was observed that more than 75 of the world’s biggest banks had joined the Interbank Information Network, or IIN, as a member to fight against threats from payment startups.

In addition, more than 220 banks have signed up for the initial service, which allows data sharing on payments over the network.

According to head of global clearing of JPMorgan, John Hunter, the company has developed a function for verifying in real time whether a payment was being transferred into a valid account.

The company expects that the system will be functional by the third quarter of 2019, with the anticipation that this system will be particularly useful for international payments, which experience greater error rates. Currently, the services are free but there is a probability for both commercial and paid applications in the future.

Seemingly, the IIN is also establishing a sandbox so that FinTechs are able to develop and release applications. It is also projected to be launched in the third quarter this year, providing developers with data modelling, secure messaging, document file transfer, and more. Its implementation would tackle many obstacles and challenges in data, ecosystem, tooling, and environment.

For the uninitiated, J.P. Morgan Chase is a U.S.-based investment bank and financial services firm with headquarters in New York City. It is one of the largest banks in the U.S. and as of 2018, it was ranked as the sixth largest bank in the world by S&P Global.

Source Credit: https://www.pymnts.com/blockchain/2019/jpmorgan-blockchain-payments/