Shinhan Card Registers Japanese Patent for Blockchain Credit Payment System

Shinhan Card's Digital Technology Recognized with Industry-First Domestic Patent and Subsequent Japanese Patent Registration
Innovative and Open Mobile Payment Enabled Without Intermediary Institutions, Opening New Possibilities for Credit Transactions

[Asia Economy Reporter Ki Ha-young] Shinhan Card has succeeded in registering a patent in Japan following its domestic registration for a blockchain-based credit card transaction system.

Shinhan Card announced on the 24th that its industry-first patented technology combining blockchain and credit payment, titled "Credit Virtual Currency Generation Device and Credit Virtual Currency Management Device" (Blockchain Credit Payment System), which obtained a domestic patent last July, has now been granted a patent registration decision by the Japan Patent Office.

Shinhan Card is the first in the industry to implement a credit transaction process on blockchain, whereas in the financial sector, blockchain technology has so far been used only for limited purposes such as remittances or personal authentication.

In contrast, the technology included in Shinhan Card’s patent is designed to implement the entire credit card transaction process on blockchain?from issuing virtual currency based on credit limits to credit payments such as lump-sum and installment payments, and settlement with merchants.

Utilizing this patent allows for designing an efficient payment method where customers and merchants are directly connected, moving away from the current form that involves intermediaries (such as VAN companies) between merchants and card companies for credit card payments.

Specifically, when applied to mobile-based payments, it uses a method that connects the Shinhan Payfan application used by customers and the merchant app in real time on a blockchain basis, enabling app-to-app payments directly between applications without VAN or PG companies.

Meanwhile, blockchain technology has recently attracted significant attention due to central bank digital currencies (CBDCs) led by China and the entry of global financial companies such as PayPal and JP Morgan into cryptocurrency businesses. In particular, Japan has fewer blockchain-related regulations than Korea and has legalized cryptocurrencies, making Shinhan Card’s patent registration in Japan highly meaningful in terms of securing a leading position in the global payment market.

Shinhan Card’s Digital First Division Head Yoo Tae-hyun stated, “This system implements the credit card transaction process via mobile on blockchain, marking a significant milestone in securing technology leadership both domestically and internationally. Through this, we will provide an innovative customer experience that leads the payment market paradigm with efficient and highly secure services tailored to domestic and international circumstances.”

This content was produced with the assistance of AI translation services.