Method and System for Hybrid Payment Authorization

A system for hybrid payment authorization, comprising:

• a merchant database of a processing server configured to store a merchant profile, wherein the merchant profile includes at least a merchant identifier and a merchant public key of a merchant cryptographic key pair;
• a receiver of the processing server configured to receive an authorization request for a payment transaction from an external entity, wherein the authorization request is formatted according to one or more standards and includes at least a plurality of data elements including at least a first data element configured to store an account number, a second data element configured to store the merchant identifier, and a third data element configured to store a transaction amount;
• a processing device of the processing server configured to generate a recipient blockchain address using the merchant public key;
• and
• a transmitter of the processing server configured to transmit at least the recipient blockchain address, a blockchain amount based on the transaction amount, and a sender digital signature to a node in a blockchain network, wherein
• the processing device of the processing server is further configured to generate an authorization response for the payment transaction, wherein the authorization response is formatted according to the one or more standards and includes at least a plurality of data elements including a first data element configured to store a response code indicating approval or denial of the payment transaction, and
• the transmitter of the processing server is further configured to transmit the generated authorization response to the external entity.