The same tech that powers cryptocurrencies such as Bitcoin are also pushing mobile commerce forward.
Blockchain technology, the tech powering cryptocurrencies, is becoming a driving force in advancing mobile commerce. This, according to IBM Blockchain global director Shyam Nagarajan.
IBM has been working with a number of banks to develop new paths for m-commerce and payments.
IBM has been working with Bank of Ayudhaya and the Kasikornbank in Thailand. They have been working with blockchain technology, said Nagarajan. Their goal has been to boost online shopping and mobile payments platforms. Their efforts are expected to take off now that the Bank of Thailand – the country’s central bank – gave the go-ahead to operating e-commerce platforms.
The central bank has, of course, established a number of regulations for these activities. For instance, banks are not permitted to participate in manufacturing practices. However, they are permitted to operate digital mobile commerce platforms. They are allowed to bring buyers and sellers together.
In order to do this, the banks are using blockchain technology and other related forms of tech.
Kasikornbank has more than 7 million mobile banking customers, each of which are potential shoppers, it said. The bank also serves quite a number of small and medium enterprises (SMEs) in addition to business customers that manufacture products.
This trend is leading to a shift in the role banks are playing, said Nagarajan. They are beginning to become trust “endorsers” among clients, he said. This is occurring as blockchain and other types of technology have been increasing basis for mobile shopping purposes.
By employing record-keeping software in a decentralized way, combined with smart contracts, AI and machine learning programs, enormous amounts of data will drive online shopping transactions.
Moreover, the blockchain technology in mobile commerce will drive the use of cryptocurrencies for payments. This may be true of Bitcoin or Litecoin, but it will also offer tremendous opportunities for alternatives such as the Ripple service, which is better geared toward real-time transaction processing. That particular crypto has been taking aim at this type of use. It now finds itself in the spotlight as adoption begins in certain digital markets.