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- 1 Mastercard, a technology firm that deals in global electronic payment systems, is openly using blockchain and generative AI to enhance its operations.
- 2 It has enabled generative AI in its system to improve fraud detection and stop fund thieves from compromising user accounts.
- 3 Mastercard is accelerating the start path blockchain and Digital Assets program as five blockchain startups join Mastercard in its journey.
On May 22 and May 15, Mastercard announced two updates to its system to safeguard users’ interests and promote the growth of blockchain and digital assets.
Improved card fraud detection utilizing Generative AI technology
Fraudsters are developing newer methods every day to loot users. So, in order to protect users from these growing fraud activities, Mastercard is introducing AI in its applications to double the speed of fraud detection.
Fraudsters steal Millions from cards through spyware, malware, and other clandestine practices such as card skimming. They convince users to add their card details, execute small transactions to confirm the details, and then sell this data to different criminals and other illegal websites.
Mastercard, a leader in implementing security measures, will now be able to predict the full card details of these compromised cards faster and enable banks to block these cards to avoid any activity from fraudsters. The timing of completing this detection process will increase substantially.
Johan Gerber, executive vice president of security and cyber innovation at Mastercard, stated, “Until now fraudsters may have thought they were operating in obscurity, seeking to launder the card details of millions of unsuspecting victims. Thanks to our world-leading cyber technology we can now piece together the jigsaw – enhancing trust to banks, their customers and the digital ecosystem as a whole.”
This new technology will scan transaction data across billions of cards and Millions of transactions at faster rates. It will double the detection rate of compromised cards. It will reduce false positives in the process by 200% and increase the speed of identifying merchants at risk by 300%.
Implementing the next generation of blockchain payments
Five startups, including Kulipa (France), Paraffin (UK), Peaq (Singapore), Triangle (USA), and Venly (Belgium), have joined Mastercard in its Start Path Blockchain and Digital Assets program. They joined Mastercard to explore how people and businesses use money to transfer value and solve real-world problems.
The startups are from different parts of the world and are building best-in-class user experiences and expanding use cases that will utilize the power of blockchain technology.
Mastercard is integrating with industry experts and fintechs to enable blockchain payments in its systems and all formats of currency, including regulated money, bank deposits, stablecoins, and CBDCs.
The company’s prior experience in payment innovation and card-based payment networks justifies its position and public reliance on the company to innovate these ecosystems with startups.
With these recent integrations, Mastercard is set to explore future use cases to develop new solutions with startups around the world. The Start Path Blockchain and Digital Assets program was founded in 2014, and since then, Mastercard has supported more than 400 startups based in more than 54 countries.
The Objective of the Startups, Joined Recently
Kulliba enables next-gen crypto payment by issuing cards for digital wallets. By joining Mastercard Start Path, they are looking to develop new ways for mass adoption of cryptos and financial inclusion.
Paraffin is involved in building enterprise-grade software products to allow financial institutions to adopt blockchain rails. They have joined hands with Mastercard to get help accelerating their advancement in blockchain innovation.
Peaq is involved in providing permissionless, borderless digital infrastructure for real-world apps (DePIN), leveraging vehicles, machines, robots, and devices. The Mastercard integration bridges between DePIN and Traditional finance. It will promote Web3 adoption.
Triangle is excited to become part of Mastercard’s program, as they look forward to integrating sustainability and finance to introduce high-impact solutions.
Venly expects to reduce the complexity and inefficiency of building on blockchain technology by building a more intuitive and accessible approach leveraging blockchain.
Amanda Shinoy is one of the few women in the space invested knee-deep in crypto. An advocate for increasing the presence of women in crypto, she is known for her accurate technical analysis and price prediction of cryptocurrencies. Readers are often waiting for her opinion about the next rally. She is a finance expert with an MBA in finance. Quitting a corporate job at a leading financial institution, she now engages herself full-time into financial education for the general public.
