Intuit, a financial software company and creator of the popular QuickBooks Accounting software, has been awarded a patent for a method of processing bitcoin payments through text message.
The United States Patent and Trademark Office (USTPO) published the patent titled “Bitcoin transaction using text message” on Tuesday, August 7.
This patent describes a system whereby users with virtual accounts can transfer funds using mobile text messages. This method for processing payment support features like creating transactions, receiving payments and balance notifications. The Patent document read:
“The invention relates to a method for processing payment. The method includes receiving, by a payment service from a payer mobile device of a payer, a payment text message comprising a payment amount and an identifier of a payee mobile device.”
The document further illustrated the payment process by explaining how payment will be validated via text messaging. Firstly, a password request for the account will be sent to the user in order to process payment. It also uses “a voice phone call [that] is automatically disconnected by the payment service without answering,” to confirm credible payments texts from random messages.
Intuit, which is based in California, has been interested in enabling bitcoin payments since 2014 when its innovation arm, Intuit Labs announced plans for QuickBooks Bitcoin Payment. The QuickBooks Bitcoin Payment was designed to allow small businesses to accept bitcoin payments without having to deal with bitcoin or bitcoin wallets.
Last year, the company announced a partnership with blockchain payment provider Veem that will integrate international cryptocurrency payments for the software. Intuit also partnered with Coinbase cryptocurrency exchange to provide the PayByCoin option, which allows merchants to receive cryptocurrency as payment for goods and services.
Solomon Sunny is the market reporter for Smartereum, one of the global leaders in Ethereum, blockchain and currency news. He produces technical price updates on digital currencies and writes recent developments about blockchain.
