IBM partners with Automakers, Bankers to develop Blockchain-based payment system

IBM has joined car manufacturer ZF Friedrichshafen and investment bank UBS, in order to construct and develop a blockchain-based mobile payment system for the automotive industry.

This partnership formulates how driverless vehicles might automatically authorize payments, and work as a digital operator for the vehicle, in the future.

The companies stated today that “Car eWallet is an innovative, digital assistant in the car that allows secure and convenient payments even on the go. Moreover, it can also perform other tasks, like opening the trunk or doors”.

Blockchain usage will eliminate the need for a third-party vendor or central computing hub to process transactions and commands, enabling the data record to be reliable and not subject to change.

When ZF originally announced the Car eWallet system in January, it promised to develop a payment system in order to assist in the charging of electric cars. At the time, Car eWallet was intended to facilitate a car-sharing system and ensure more secure package delivery by having items dropped directly into a car's trunk.

IBM will now use its blockchain infrastructure to further develop a secure system that can perform the required tasks, show authorized users the relevant information to their vehicles and carry out transactions in real-time.

This move comes at a time whereby the automotive industry is exploring the possibilities of blockchain application. For example, Toyota announced, in May, its attempt to further develop autonomous cars using blockchain technology.