Mindtree leverages Blockchain in Merchant On-Boarding Solution for banks

Mindtree announced the launch of blockchain-powered merchant onboarding solution for acquirer banks and payment service providers.

The solution uses the Hyperledger Fabric blockchain technology, which helps the financial institutions to create with a secure onboarding experience.

The need for business prompts acquirer banks, financial institutions to onboard new merchants as customers as quickly as possible. But fraudulent transactions can result in losses and require technological assistance to mitigate risks. Also, these institutions have to comply with Know Your Customer Know Your Customer’s Customer and anti-money laundering regulations.

Executive Opinion

Global head of Banking, Financial Services and Insurance for Mindtree, Manas Chakraborty, said, "Financial institutions that process merchant transactions need to strike a balance between growing their customer base and preventing fraudulent transactions. Both acquirer banks and merchants are frustrated with the on-boarding process and want more transparency, more speed, and less time and effort. Blockchain offers an exciting opportunity to eliminate complexity. Mindtree’s Merchant On-Boarding solution eliminates the need for third-party verification each time a merchant is onboarded and provides merchants with more insight into the process than ever before."

Mindtree Banking Cloud applications

Mindtree noted that the merchant onboarding process is complex and comes up with several risks. Third parties are usually consulted for customer verification and to make sure that the merchants are not involved in any type of fraud activity.

The newly launched blockchain-enabled solution automates this process, reduces operational costs and helps in quality control with standardized global best practices, the announcement notes.

The merchant onboarding solution is developed on a hyper ledger fabric channel, which is a private distributed ledger framework for the communication between members for all the merchants. The channel also makes sure secure and private sharing of document approval and information between the policies.
The company also has plans to reveal the new solution at PayThink 2019 on the 21st of September in Los Angeles, California.