Auto Banking News

Daimler, Commerzbank pilot blockchain digital cash for machine payments

daimler truck id truck wallet

Daimler Trucks and Commerzbank have run a pilot to use the Daimler Truck Wallet to make payments with e-euros from Commerzbank. Once the e-euros are used for payments, the recipient can request Commerzbank to convert the digital cash back to its bank account. The system has the regulatory approval of the German Federal Financial Supervisory Authority (BaFin).

Commerzbank’s payments use the Corda blockchain, the same technology that the bank has used for many of its blockchain pilots. The latest test did not use an actual truck.

Daimler envisages several applications. Top of the list is for fuel payments. Dr Helge Königs, head of the Truck Wallet project at Daimler Trucks elaborated on how it can prevent fraud. “This renders it practically impossible to carry out such things as fuel card scams whereby criminals copy a fuel card and spy on the PIN number being entered,” he said.

In the future, by using automated payments, drivers can focus on other tasks. And it will reduce the need for reconciliation because all the transactions will be on a distributed ledger.

Daimler Trucks emphasized that the Daimler Truck ID and Truck Wallet are still in the prototype phase. The Truck ID means that the truck can identify itself to other machines, enabling autonomous machine-to-machine transactions.

Daimler envisages numerous potential applications. These include processing tolls, transmitting freight papers, potentially controlling and billing subcontractor drivers, and processing pay-per-use vehicle leasing.

Both Commerzbank and Daimler have been active with blockchain experiments.

Commerzbank is a participant in the Marco Polo trade finance network and ran a pilot with LBBC four months ago. The bank is also working with the German innovation group Fraunhofer IML to explore the future of exports and trade finance. Earlier this year it executed two money market tests, one with Deutsche Börse and another with Siemens and Continental. Last year it also tested foreign exchange transactions and took part in the Spanish stock market (BME) warrants test.

The Blockchain Factory of Daimler Financial Services has also developed a Daimler Car Wallet for using in ride-sharing and car-sharing. Daimler experimented with employees using blockchain tokens to encourage good driving. Mercedes is working on using blockchain in its supply chain. And Daimler Trucks has partnered with startup Filament on a project for remanufactured components, which use a combination of used, repaired and new components.


Image Copyright: Daimler Trucks