Commerzbank Tests Blockchain-Based, Automated Recharge And Payment System

The second-largest bank of Germany, Commerzbank, officially confirmed on August 8, that they were successful in testing a machine-to-machine payment system with Daimler trucks, the maker of Mercedes-Benz cars, where payment is exchanged and settled between a Daimler truck and an electronic charging system without any human intervention. The system issued euros on the Corda blockchain and provided automobile giant Daimler Trucks, with “cash on ledger” to process the payment.
The firm worked on the “concrete pilot project,” in cooperation with Daimler Trucks, and celebrated it as a system that “deals with fully automated payment processing of charges between a tank charging station for electricity and a lorry system.”
These systems can prove to be extremely efficient in Supply Chain industries.
The automated payment system for recharging is an example of the next generation of machines that can process data and payments with complete autonomy using blockchain technology.
Stephan Müller, Divisional board member, Transaction banking at Commerzbank said,

“After having digitized securities transactions in past pilot projects, the focus is now shifting to DLT-based payment structures. As a bank we see our mandate as creating new digital payment architectures for our clients”,

Commerzbank is the first German bank to develop a blockchain-based payment system for machine-to-machine transactions.
The bank also plans to use these solutions in other sectors like the Chemicals sector, in manufacturing or even the real estate industry. They are also evaluating steps for developing an eMoney-based payment processing in collaboration with industry partners.
Before this, Commerzbank explored the utility of blockchain technology by executing commercial transactions via trade finance blockchain Marco Polo, as well as processing a commercial paper transaction “in minutes rather than days,”- made possible because of the technology.
The transparency, trustless-environment, and immutability of the blockchain environment make it suitable for uses with micro-payments, along with internet-enabled machines and even, Artificial Intelligence. Commerzbank has realized this and correctly steered its research and development team towards the innovative path of blockchain.

Rishma Banerjee

Rishma is currently pursuing a bachelor’s degree in International Relations and has a special place in her life for sifting through all sorts of random trivia, thank you very much.