Welcome!

News Feed Item

IBM and China UnionPay E-payment Research Institute Share Bank Card Bonus Points Among Multiple Banks Using Blockchain

SHANGHAI, Sept. 23, 2016 /PRNewswire/ -- At the Shanghai International Blockchain Week 2016, IBM (NYSE: IBM) and China UnionPay E-payment Research Institute previewed the demo of a collaborative project on loyalty bonus points exchange among multiple banks using blockchain technology.  With a few simple and quick steps, consumers will be able to exchange bonus points from among any of the banks they do business with to select the rewards they want.

IBM Corporation logo.

Bonus points earned through purchases on bank cards have long been an important method to attract and encourage customer loyalty to branded bank cards. The variety and selection of merchandise available in online bonus points exchange shops are an important reason for customers to favor and use specific bank cards.  Since bonus points cannot be freely exchanged among different banks, many bonus points go unused because of strict bonus points policies or a limited selection of goods for exchange.

Enabling banks to integrate and share bonus point systems can be a challenging and expensive task using conventional technology. To address this problem and provide more value for bank customers, IBM China Research Lab and China UnionPay E-payment Institute created an innovative business platform on IBM Blockchain using the Hyperledger Fabric to create a permissioned network for the exchange of bonus points.

"As a new industry pilot for blockchain technology, this represents a significant business breakthrough and innovation milestone for the electronic payment business," said He Shuo, Director, the Electronic Payment Research Institute, China UnionPay.  "The joint research efforts between China UnionPay E-payment Institute and IBM Research has enabled the successful exchange of bonus points among banks using blockchain technology, which embeds trust into transactions. This pilot along with similar innovations underway using blockchain will positively change the future of the finance industry."

This joint effort will also integrate online and offline channels using blockchain. As a result, it will be possible for China UnionPay card holders to go to any offline supermarket or mall equipped with intelligent point-of-service (POS) devices to exchange bonus points for commodities by direct scanning. It is anticipated that bonus points from flight mileage, mobile phone bills, gas cards and food and beverage purchases can be freely exchanged and swapped in the future.

"The combination of blockchain technology and expertise from IBM coupled with an innovative business approach by China UnionPay in the payment industry has resulted in a significant first of a kind demonstration of blockchain technology in the financial payments industry," said Dr. Shen Xiaowei, Director of IBM Research - China, CTO of IBM Greater China Group.  "IBM is partnering with the Hyperledger Project to build an open source, enterprise-grade blockchain platform and is helping clients define and develop more industry use cases. In time, we expect this to result in widespread adoption of permissioned blockchain networks to solve a number of business challenges."

China UnionPay is a core transfer, settlement and clearing organization in China's bank card industry, and its transfer, settlement and clearing network operates in over 150 countries. As a subordinate research institute of China UnionPay, the Electronic Payment Research Institute is responsible for research and evaluation of cutting-edge technology and mode in payment market, study and proof of core technologies and models for payment industry in the future, rehearsal and analysis of proactive and basic technologies that impact the payment industry. It is driving the adoption of new technologies including blockchain, intelligent terminals, big data, and trusted execution environment in financial payment.

IBM is rapidly expanding its blockchain consulting services and capabilities and actively working with clients to understand what it takes to make blockchain ready for business. Through its open source contributions and resources for blockchain software developers, IBM is advancing the science of blockchain, helping to remove complexity, and making it more accessible and open. Financial services, supply chains, IoT, risk management, digital rights management and healthcare are some of the areas that are poised for dramatic change using blockchain networks.

About IBM
For more information about IBM Blockchain, visit www.ibm.com/blockchain.

Contacts:

Holli Haswell
IBM Media Relations
1-720-396-5485 
[email protected]

Niu Yantao
IBM Greater China Group
+8610 63613205
[email protected] 

Logo - http://photos.prnewswire.com/prnh/20090416/IBMLOGO

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/ibm-and-china-unionpay-e-payment-research-institute-share-bank-card-bonus-points-among-multiple-banks-using-blockchain-300333181.html

SOURCE IBM

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Digital innovation is the next big wave of business transformation based on digital technologies of which IoT and Big Data are key components, For example: Business boundary innovation is a challenge to excavate third-party business value using IoT and BigData, like Nest Business structure innovation may propose re-building business structure from scratch, as Uber does in the taxicab industry The social model innovation is also a big challenge to the new social architecture with the design fr...
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lea...
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
Whether they’re located in a public, private, or hybrid cloud environment, cloud technologies are constantly evolving. While the innovation is exciting, the end mission of delivering business value and rapidly producing incremental product features is paramount. In his session at @DevOpsSummit at 19th Cloud Expo, Kiran Chitturi, CTO Architect at Sungard AS, will discuss DevOps culture, its evolution of frameworks and technologies, and how it is achieving maturity. He will also cover various st...
Major trends and emerging technologies – from virtual reality and IoT, to Big Data and algorithms – are helping organizations innovate in the digital era. However, to create real business value, IT must think beyond the ‘what’ of digital transformation to the ‘how’ to harness emerging trends, innovation and disruption. Architecture is the key that underpins and ties all these efforts together. In the digital age, it’s important to invest in architecture, extend the enterprise footprint to the cl...
Adobe is changing the world though digital experiences. Adobe helps customers develop and deliver high-impact experiences that differentiate brands, build loyalty, and drive revenue across every screen, including smartphones, computers, tablets and TVs. Adobe content solutions are used daily by millions of companies worldwide-from publishers and broadcasters, to enterprises, marketing agencies and household-name brands. Building on its established design leadership, Adobe enables customers not o...
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
IoT offers a value of almost $4 trillion to the manufacturing industry through platforms that can improve margins, optimize operations & drive high performance work teams. By using IoT technologies as a foundation, manufacturing customers are integrating worker safety with manufacturing systems, driving deep collaboration and utilizing analytics to exponentially increased per-unit margins. However, as Benoit Lheureux, the VP for Research at Gartner points out, “IoT project implementers often ...
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
Video experiences should be unique and exciting! But that doesn’t mean you need to patch all the pieces yourself. Users demand rich and engaging experiences and new ways to connect with you. But creating robust video applications at scale can be complicated, time-consuming and expensive. In his session at @ThingsExpo, Zohar Babin, Vice President of Platform, Ecosystem and Community at Kaltura, will discuss how VPaaS enables you to move fast, creating scalable video experiences that reach your ...
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.
In his session at @ThingsExpo, Kausik Sridharabalan, founder and CTO of Pulzze Systems, Inc., will focus on key challenges in building an Internet of Things solution infrastructure. He will shed light on efficient ways of defining interactions within IoT solutions, leading to cost and time reduction. He will also introduce ways to handle data and how one can develop IoT solutions that are lean, flexible and configurable, thus making IoT infrastructure agile and scalable.
Businesses are struggling to manage the information flow and interactions between all of these new devices and things jumping on their network, and the apps and IT systems they control. The data businesses gather is only helpful if they can do something with it. In his session at @ThingsExpo, Chris Witeck, Principal Technology Strategist at Citrix, will discuss how different the impact of IoT will be for large businesses, expanding how IoT will allow large organizations to make their legacy ap...