Payment21® Adds Patent-Pending E-Commerce App to the Bitcoin Ecosystem
[May 26, 2016] – Alexandria, Virginia, USA – Payment21®, a global provider of AML-compliant Bitcoin payments announced today its recent filing of a utility patent application with the United States Patent and Trademark Office for its “Dynamic Delivery Authorization for Cryptographic Payments.”
The system described in the patent application enables Bitcoin processors and merchants to control both delivery authorizations and default risk. The innovation mitigates losses that might occur due to incorrect approval for delivery of goods and services. The utility patent application (US 15/165,564) was filed on May 26th, 2016, and is based on the provisional patent application (US 62/317.633) filed on April 4th, 2016.
Payment21®, a Swiss-based Bitcoin processor, offers an AML-compliant Bitcoin Cashier system based on superior IT-security and state-of-the-art payments technology to effortlessly support collection and exchange services throughout global markets. The company’s invention allows users to issue delivery authorizations incrementally by controlling the particular clearing and settlement mechanisms of Bitcoin payments.
Reconcile Digital Cash Payments In Real-Time
“Providing a dynamic delivery authorization system for e-commerce merchants is a must for Bitcoin,” noted Bernhard Kaufmann, the director of Moving Media GmbH, which owns the Payment21® brand. He went on to say, “As an e-commerce merchant, you have to control the delivery of goods and services and reconcile payments in real-time. This can only be done through sophisticated authorization systems synchronizing inventory and resource planning systems with clearing and settlement mechanisms of payments.”
One distinct feature of the invention is how it coordinates block chain confirmations between payment clearing statuses of processor engines and delivery clearance methods of merchants’ e-commerce distribution systems. The proprietary mechanics of Payment21® support the synchronization of delivery approvals with block chain confirmations. This element mitigates default risk by preventing misallocation of funds during the delivery approval process. The system progressively adjusts and reconciles various delivery statuses. It is useful for e-commerce merchants who utilize Industry-specific distribution systems.
Opportunity for the Internet of Things
A technical spokesperson for the company added, “Our invention is a dynamic delivery authorization system supporting the unique characteristics of crypto currency, which basically results in faster deliveries based on just-in-time payment guarantees. Essentially, this tool benefits consumers and merchants alike. Potentially, it represents a tremendous opportunity for the Internet of Things (IoT) by allowing users to profit from advanced automation.”
With the option to fully automate delivery approvals for goods and services, as well as the ability to align the status of funds as “cleared” with business requirements, merchants can fill orders faster and release goods and services for delivery sooner. Merchants utilizing the invention benefit from increased velocity of payments and, as a result, have more working capital available.
The innovation is accessible through the Payment21® Bitcoin Cashier System. Merchants are able to self-service their delivery approval preferences by adjusting account settings. Payment statuses can be aligned with various delivery statuses of e-commerce distribution systems. This functionality is accomplished by using the synchronization intervals of Bitcoin transaction confirmations on the block chain. Linking clearing and settlement of funds with delivery authorizations makes the release of virtual goods and shipping of physical goods more efficient and effective.
Making Instant Delivery Possible
Another property of the invention allows Bitcoin to be available immediately upon receipt, thereby making instant delivery possible. For some verticals, such as merchants selling virtual goods, the system eliminates the need to wait for payment confirmations before delivery authorization is forwarded to e-commerce distribution systems. Using the invention, funds can be regarded as received right after payment authorization or after a small number of confirmations, thus allowing orders to be processed for delivery faster than usual.
Typical Bitcoin transactions take 10 minutes or more to be recorded in a block by miners. Until confirmed in the block chain, they are called “zero-confirm” transactions, and cannot be fully relied upon as the sender could spend the money elsewhere before the transaction is confirmed. As a result, merchants accepting Bitcoin require multiple confirmations before crediting a payment as received, which can take anywhere from a few minutes to several hours.
Accepting Bitcoin transactions is difficult, if not impossible, for most regulated businesses today because payment processors do not have the required know-how on AML-compliance or the necessary technologies in place. The ability of Payment21® to deliver a secure processing solution based on AML-compliant Bitcoin technology was recently recognized at the 2016 Constantinus Awards, where it won the prize for “Best International Project.”
About Payment21® and Moving Media GmbH
Moving Media is the owner of the Payment21® brand and a registered financial intermediary providing AML-compliant crypto currency transactions. Backed by its award-winning payment gateway that links consumers and businesses directly with payment schemes, exchanges and banks, Payment21® offers interfaces for e-commerce and mobile usage, along with safety-related products to drive market adoption. Payment21® service offerings are focused on regulated businesses who need effective compliance procedures. The target group includes publicly-listed e-commerce merchants, licensed gaming enterprises, audited charities, and concessionary wireless network providers. Payment21® is committed to building trusted networks and making the digital payments ecosystem compliant, secure and more user-friendly. The company is headquartered in Switzerland.
Moving Media GmbH
Attn: R&D Compliance Officer
CH-9430 St. Margrethen SG
Toll Free: +1 888 770 0850