Russian Payments Company Uses Blockchain to Reduce Financial Fraud
BlockNotary, a blockchain-focused startup which offers a mobile application that enables users to store the digital fingerprint of files in the blockchain network, has completed the development of a financial technology using Blockchain-data technology Tieron, for Russian mobile payments processor Pay-Me.
Tierion is a blockchain data platform which allows individual users and businesses to record data in the blockchain with an open standard called Chainpoint to generate blockchain receipts. By creating unalterable and irrefutable sets of data, Tierion completely eliminates the need to verify data with an intermediary or a third-party application.
BlockNotary utilized this technology of Tierion to enable popular Russian mobile payments processor Pay-Me to implement a blockchain-based system that allows its clients to complete an identity check before receiving their point-of-sale (POS) devices online, a procedure that has always been accomplished face-to-face.
Due to the gradual increase in the number of Russian criminals stealing credit cards and using mobile POS terminals to launder money, Pay-Me has always required merchants and businesses to visit their headquarters for an interview and identity check before granting permission to use their POS machines.
With the implementation of the blockchain-based video interview application developed by BlockNotary, however, Pay-Me receives an unalterable record of the entire process which can be verified using the blockchain without the presence of a third-party application. Because the video files are submitted to the blockchain using the Tierion software, the Pay-Me team can always verify their data on the blockchain which is transparent by nature, thereby reducing their legal budget allocations.
“Recording a video of yourself during the registration process helps prevent fraud. As CEO, I’d like to make it as difficult as possible for criminals to use Pay-Me to conduct illegal activities,” said Pay-Me CEO, Vladimir Kanin.
According to the video demonstration provided by Tierion CEO Wayne Vaughan, the video interview application of BlockNotary creates a permanent record of the merchant’s personal details (identity card) and reiteration of the business agreement, which is automatically uploaded to the blockchain.
“The customer’s statement of intentions and the information needed for a background check are collected. This makes the onboarding process smoother for new customers and allows Pay-Me to ship a POS device before a background check is complete. Additionally, Pay-Me gets a tamper-proof record of the entire process that can be verified using the blockchain,” explained Vaughan.
He further emphasized that BlockNotary is exploring more potential blockchain-based applications that could be applied to cross-industry organizations and institutions.
“We’re thrilled that BlockNotary chose to build this new product using Tierion. The company is exploring other applications for this technology including tenant background checks, purchasing firearms, and insurance claims submissions,” said Vaughan.
While traditional methods and systems of recording data have proven to be unsecure due to the centralization of information, a decentralized and distributed ledger of data such as Tierion and BlockNotary’s financial application could eliminate many issues dealt by corporations like Pay-Me across the globe.