The leading credit card brand, Tarjeta Naranja (Orange Card) has announced a new partnership today. The firm will link up with Ripio Credit Network (RCN) to investigate new credit services on a blockchain. Naranja have signed a Memorandum of Understanding (MoU) and a potential product launch has been suggested for the beginning of 2019.
Who Are RCN?
RCN provide wallet and scoring services, using smart contracts and matching lenders to borrowers. With the partnership with Naranja, they will be establishing a peer-to-peer network for Naranja customers. CEO Sebastian Serrano told Forbes:
RCN’s partnership with Naranja is the first step for many other innovations to come. In particular, this will be relevant for two things. First, it’s important to note that most people don’t have access to financial applications in Latin America. More than 65% of people living in the region don’t have access to financial services, and those who do have an expensive APR. RCN can lower the cost of this and create financial inclusion to impact our economy and improve the lives of millions of people globally.
Naranja would be the first credit card company in Argentina to offer blockchain lending services, which are much cheaper than conventional lending through banks, thanks to APR. Naturally, the company are excited about the new partnership, with the marketing manager Juan Pablo Mon, saying:
We believe that blockchain technology can provide wider and better financial inclusion, and RCN’s proposal fits our particular needs. We’re really excited about the partnership and an upcoming pilot integration.
Meanwhile, Mastercard have also been looking at using blockchain tech for credit card accounts. The firm have recently applied for a patent for secure verification of credit card details. The patent stated:
The transaction may be conducted via the display of a machine-readable code to the point of sale device, which may further prevent skimming as the reading of such a code can be more easily controlled via control of the underlying display; the display can be easily shielded and is often obscured when in a pocket or purse.
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