SETL, Deloitte and Metro Bank have successfully demonstrated a contactless blockchain smartcard retail payment system for 100 customers of the UK-based challenger bank. SETL provided blockchain enabled smartcards allowing for digitized payments, while Deloitte exercised its own blockchain ID system. Finally Metro bank hosted accounts connected to the smart cards. The users were each issued a contactless smartcard to make purchases from merchants through the digitized payments systems, over Deloitte’s ID system, all while their balances were updated immediately with the accounts held at Metro bank. The purchasers’ money moved from their card to the merchant instantaneously and securely with no interchange fees.
The project was facilitated in the FCA Regulatory Sandbox, which demonstrates the benefits of the a sandbox environment, as it provides a ‘safe space’ in which businesses can test innovative products, services, business models and delivery mechanisms in a live environment while ensuring that consumers are appropriately protected.