South Korea's largest credit card company secures a patent for cryptocurrency credit payment technology.

Shinhan Card, a subsidiary of the Shinhan Financial Group in South Korea, has announced that they have developed the world's first service based on blockchain technology. This technology offers credit card functions such as setting spending limits, monthly installment payments, and payments to merchants.

The company's official statement on The Times mentioned that these key credit card services will be able to utilize blockchain technology. Currently, most blockchain payments are still limited to cash transactions or user identification for online transactions, making this a significant advancement in blockchain payment technology.

According to reports, this patent may enable "cardless credit transactions" using the mobile devices of system users, disrupting three traditional intermediaries: credit card companies, value-added network (VAN) service providers, and payment channels.

The patent application outlined on the Korean Intellectual Property Office (Kipris) website summarized the invention as follows:

The patent consists of two main components: blockchain nodes for blockchain production, including virtual currency generated based on consumer credit limits, updated on the blockchain according to payment details; and transaction units to store transaction conditions corresponding to each account for settlement on the blockchain.

The company also mentioned that Shinhan Card is looking to expand the credit patent to Europe, the United States, Japan, China, Vietnam, and India. Earlier this year, sister company Shinhan Bank stated that they are using blockchain technology to expedite the approval process for loan products. Specifically, the bank will utilize a blockchain platform to verify the necessary documents for credit loans, such as qualification certificates or proof documents.

From general peer-to-peer payments to credit payments, it confirms that cryptocurrencies are gradually acquiring the payment functions of legal tender currencies.

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