JCB Co., Ltd. and Keychain GK have developed a novel infrastructure for processing credit-based micropayments between
IoT devices. The innovation promises to enable direct human-to-machine and machine-to-machine payments at scale without
the confines of credit cards.
As new networks, such as 5G, deploy and the use of Internet of Things (IoT) devices grow, so will the need for automated
and machine-to-machine micropayments. Mobile payment apps enabled the common mobile user to pay with their phone,
however the current payment infrastructure does not support tens of billions of IoT devices. Use cases in point:
electric vehicles automatically paying for charging, or a farmer receiving payment for produce to a mobile device while
offline. Such an infrastructure needs to handle vast cybersecurity and operational risks related to identity fraud,
hacking, privacy and denial of service.
JCB and Keychain have begun solving these challenges by implementing a new blockchain and distributed ledger-based
payment infrastructure that mitigates the risks of IoT micropayments.
Micropayment Infrastructure
JCB and Keychain developed the solution based on digital identity, delegated transaction approval, and secure
transaction archival (joint Japan patent pending #2021-00571).
1. Integrated digital identity
- Each IoT device has a unique, blockchain-based, self-sovereign identity associated with customer identity. This
establishes a necessary technical basis for behavior attribution and regulatory compliance.
2. Delegated transaction approval at the network's edge
- Using Keychain Core's data provenance capability, the cost, operational risks, and financial risks of payment
processing are pushed towards the edges of the network. This enables mitigating large-scale cybersecurity attacks with
comparatively large-scale defenses.
- Transaction approval is processed in real time by devices geographically closer to the location of the transaction.
- The result is a smoother, lower latency user experience and more scalable risk mitigation for the issuer.
3. Secure transaction record archival
- Using identity-based data provenance and security techniques, the system ensures that data is securely relayed to the
issuer for compliance and integrity checking.
- The records integrate into conventional settlement systems, leveraging the digital identity-user mappings.
The go-to-market plan consists of enhancing the technology, practical real-world pilots, production infrastructure build
out during 2021, and go-live in 2022.
Keychain Blockchain Technology
Keychain Core, Keychain's flagship technology product, is a set of software building blocks that enable Keychain
partners to easily exploit the power of blockchain and distributed ledger technology. With Keychain Core, Keychain
partners reduce operational risks related to data security and achieve new patterns of business. Keychain Core natively
supports a wide range of devices including personal computers, tablets, smart phones, smart watches, and Internet of
Things (IoT) devices easy to integrate with existing systems and applications.
Keychain Core main elements are the following:
1. Self-sovereign identity
2. Data-centric security
3. Secure workflows
4. Custom digital assets
About JCB
JCB is a major global payment brand and a leading credit card issuer and acquirer in Japan. JCB launched its card
business in Japan in 1961 and began expanding worldwide in 1981. Its acceptance network includes about 35 million
merchants in the world. JCB cards are now issued in more than 20 countries and territories with more than 140 million
cardmembers. As part of its international growth strategy, JCB has formed alliances with hundreds of leading banks and
financial institutions globally to increase merchant coverage and cardmember base. As a comprehensive payment solution
provider, JCB commits to providing responsive and high-quality service and products to all customers worldwide. For more
information:
About Keychain
Keychain is a leading technology provider that is building managed trust for the digital world. As a leading blockchain
technology provider, Keychain aims to fortify operational integrity, reduce risks/cost, streamline business processes,
and enable new patterns of business in finance, industry, and enterprise. Keychain's technology has been recognized with
prestigious awards including the Global Fintech Award from the Association of Banks in Singapore and the IoT Lab Special
Jury Award from Japan's Ministry of Economy Trade, and Industry.