American Express has patented a hybrid identity service system allowing secure transactions. Users input credentials, which are hashed and compared for authentication. The system generates passcodes for cryptographic processes, ensuring private key security. Transactions are signed and encrypted for enhanced protection. GlobalData’s report on American Express gives a 360-degree view of the company including its patenting strategy. Buy the report here.

According to GlobalData’s company profile on American Express, Payment actuated vending was a key innovation area identified from patents. American Express's grant share as of January 2024 was 52%. Grant share is based on the ratio of number of grants to total number of patents.

Hybrid identity service system for secure transactions

Source: United States Patent and Trademark Office (USPTO). Credit: American Express Co

A recently granted patent (Publication Number: US11887112B2) outlines a method and system for secure cryptographic processes within a cryptowallet. The method involves receiving a user identifier and password, hashing them to produce a password hash, and comparing it to a stored hash for authentication. Additionally, the system decrypts an encrypted passcode to enable cryptographic processes on keys stored in the cryptowallet. A second passcode is generated and encrypted for further security measures. The system ensures secure transaction signing and re-encryption of private keys in response to transaction requests.

Furthermore, the system prompts the user device to create the cryptowallet, stores encrypted passcodes, and handles account creation information securely. The method involves generating random passcodes, utilizing encryption keys for added security, and ensuring encrypted communication channels between the user device and the browser. The system also includes instructions for handling various user information like usernames, addresses, and phone numbers. Overall, the patent focuses on enhancing the security and functionality of cryptowallets through a series of cryptographic processes and secure authentication methods, ensuring the safe storage and utilization of private keys for transactions in the digital asset space.

To know more about GlobalData’s detailed insights on American Express, buy the report here.

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GlobalData, the leading provider of industry intelligence, provided the underlying data, research, and analysis used to produce this article.

GlobalData Patent Analytics tracks bibliographic data, legal events data, point in time patent ownerships, and backward and forward citations from global patenting offices. Textual analysis and official patent classifications are used to group patents into key thematic areas and link them to specific companies across the world’s largest industries.