German banking giant Commerzbank has announced that it is exploring a machine-to-machine [M2M] payment solution based on Blockchain technology.
Commerzbank is a leading internationally active commercial bank with offices in 50 countries. The bank handles around 30% of German foreign trade and is the market leader in German corporate banking.
Commerzbank has been actively exploring blockchain technology in the past 12 months and has successfully completed a series of blockchain tests.
The bank said in a press release on August 8 that a fully automated payment transaction was made between the charging point and the Daimler Truck system.
According to the report, the test demonstrated how blockchain technology can eliminate human-computer interaction and automate subsequent loading and payment processes.
For this transaction, Commerzbank issued the euro through blockchain and provided a “cash book” to Daimler Trucks to process the payment.
Commerzbank Blockchain A Big Deal
Increased digitization means that machines are increasingly interconnected and autonomous. However, current payment systems cannot yet map a fully automated payment process without human actions.
Using blockchain technology it is possible to create payment solutions that have fully automated context without the need for human actions.
In addition, the gains of this efficiency of automated payment solutions can be further amplified to cover more sectors. This would help the current banking system in processing payments faster and accurately.
However, the bank did not give further details of the testing, such as how many euros were processed in the system or how the charging station would receive and process the payment.
It remains to be seen if this development could offer efficiency improvements in the short term, as well as having possibilities in other industries where machine-to-machine communication may be applicable.