One of the largest financial institutions in Japan, Mitsubishi UFJ Financial Group (MUFG), is going to launch a blockchain payment network with the U.S.-based cloud and networking firm Akamai Technologies. The blockchain payment network will reportedly be launched by February or March 2021. The blockchain payment platform will work in various payment sectors to gear up for the upcoming era of the Internet of Things (IoT).
MUFG to Launch Blockchain Payment Network in 2021
The new platform intends to provide a high-speed payment service including support for billing and micropayments. The deal will also involve Japanese firm Seiko Solution and its CREPiCO network, Japan’s first wireless credit card payment service. The blockchain payment network will integrate the payment terminals from Seiko’s electronic devices with MUFG NICOS, the credit card company of the Japanese bank.
Both the firms have also created a joint-venture business named Global Open Network or GO-NET through which the payment services will be provided. GO-NET has further plans to launch a payment service to enable one-touch credit card payments at stores, vending machines, and more. It will be reportedly done through a lower connection fee of almost 80%.
GO-NET Collaboration Between Mitsubishi UFJ Financial Group and Akamai
Initially founded two years ago, GO-NET is a joint collaboration between MUFG and Akamai. The Japanese banking giant alone owns an 80% stake in the venture. GO-NET reportedly can process a payment speed of 100,000 transactions per second. Such a high transaction speed exceeds even that of VISA’s processing speed of about 70,000 transactions per second.
The Global Open Network has mentioned that its platform can be expanded to as high as 10 million transactions per second when dealing with smaller payments.
MUFG has been working to launch its own digital currency called MUFG Coin for some time now. Although, it is not yet clear whether the bank’s digital currency is anyway related to the upcoming blockchain payment network.