Converge payment systems may use blockchain to reduce costs, speed up payments
Converge Payment Systems (CPS) may be the first company to integrate blockchain into its payment systems in the United States, a move that could lead to the use of the digital currency as a method of payment in the near future, according to Bloomberg.
The payments service provider, which has raised $15 million in venture funding and plans to unveil its first blockchain-based payment system in the second quarter of 2019, says it will be integrating the technology into its core business by 2020.
In a presentation to analysts last month, CPS founder and chief executive Officer Kevin Dolan said the company’s payment systems could eventually be integrated with the blockchain and allow it to be used as a “transacting medium” for payments.
Dolan said CPS will have access to blockchain to provide payments through the next decade and said it would use the technology to make payments faster, cheaper and more secure.
“We’re not just building a system for merchants to use, but a platform for consumers and businesses to use,” Dolan told analysts.CPS said in its presentation that the company has already made significant progress in making payments more secure, and that it has “demonstrated the ability to successfully execute the payments network” for the past two years.
Cps said it plans to use the blockchain to make payment transactions as soon as 2020, which would be the second time in as many years that the payments service has rolled out its payment system.
In its presentation, CPS said it will use blockchain for its payments platform in two areas: facilitating payment processing and securing consumer information.
The payment service provider said it is looking for a network of “high-trust institutions” to secure consumer information, such as credit card information, and to make the payments platform as secure as possible.
The company said that in addition to securing consumer and merchant information, it will also be using blockchain to allow CPS to better serve customers, including through the use and disclosure of payment information.CPG said it expects to use blockchain technology to provide the “unprecedented ability” of CPS to serve consumers with “the fastest, most secure and secure digital payment experience.”CPS has seen its payments volume grow as more people become interested in using the service.
Last year, the company said it processed $2.5 billion in transactions, up from $1.3 billion in 2015.