Mitsubishi Financial Group to Debut Blockchain-Based Payment Network by 2021

MUFG will be able to harness its existing financial services to drive the mainstream adoption of the network.

Japanese banking giant Mitsubishi UFJ Financial Group (MUFG) is set to launch its high-speed blockchain-based payment network by 2021. Per a Coindesk report, the Mitsubishi payment network is under development in partnership with the United States-based fintech startup Akamai.

Per the report, the blockchain-based payment network from the duo of Mitsubishi and Akamai will usher in cheaper and more efficient payment services through their joint venture Global Open Network (GO-NET). The GO-NET venture which has been in development since 2016, initially unveiled the launch of payment services in the first half of 2020 and projects to integrate payment terminals from electronic device manufacturer Seiko Holdings Corp (TYO: 8050) with MUFG’s credit card company MUFG NICOS sometime in February 2021.

Digital payment services are taking a mainstream stance amongst developed economies around the world. The potentials inherent in digital payment services were showcased by the suspension of Ant Group’s Initial Public Offering by Japan’s neighbor China. 

Ant Group is the fintech arm of Alibaba Group Holding Ltd (HKG: 9988) and is the firm behind one of China’s largest payment platform Alipay. The IPO suspension revealed the paranoia the Chinese government harbors in relation to the reach of Ant Group, should it succeed with the IPO and its accompanying international expansion.

While Japan’s digital payment ecosystem is not as monopolized as that of China, empowered institutions including the MUFG are beginning to enhance their offerings through blockchain technology. 

According to reports and in contrast to the transaction speed of competing payment giants such as Visa Inc (NYSE: V), the Mitsubishi Akamai-backed GO-NET payment network or system can process up to 100,000 transactions compared to 70,000 for the former. The GO-NET system boasts to be able to increase this transaction rate to about 10 million per second but for smaller amounts.

Mitsubishi Payment Network Is a Product of Strategic Synergy

The cooperation between Mitsubishi and Akamai is a strategic and synergistic partnership wherein the former contributes to the growth of the payment network through its existing market reach while the latter’s technological infrastructure will help protect the integrity of the system.

According to Coindesk, MUFG will be able to harness its existing financial services to drive the mainstream adoption of the network. Akamai on the other hand will help GO-NET build its infrastructure with around 280,000 servers in 136 countries and the blockchain technology that comes with a native wallet.

As various firms continue to debut blockchain-based payment networks, the fight for dominance will therefore depend on the nature of the partnership, innovation, and product type each new entrant is set to unveil.

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Benjamin Godfrey

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

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