Mastercard turns to blockchain to tackle counterfeiting

The payment giant Mastercard is partnering with the retailer Fred Segal Sunset and the fashion platform MADE to support female designers and demonstrate its blockchain-based Provenance solution. The app enables customers to gain insight into a product’s journey and confirm its authenticity by scanning a QR code on it.

In the first phase, customers will be able to shop pieces designed by Kate and Laura Mulleavy in Fred Segal stores. Later on, Mastercard is considering using the same blockchain solution with other partners to raise consumer confidence and support new creators. Sherri Haymond, the company’s executive vice president of digital partnerships, says that “Leveraging innovative technology solutions, we are able to tell the stories of the products consumers are buying.”

Counterfeiting incurs massive loses to producers

According to the Global Counterfeiting Report 2018, businesses suffered losses of around $323 billion due to online counterfeiting in 2017. And luxury brands alone incurred $30.3 billion dollars of losses through internet sales. Blockchain technology is being used to counter this problem on a global scale.