Title: System and method for payment transaction authentication based on a cryptographic challenge

ABSTRACT: An embodiment herein provides a processor implemented method for blockchain-based electronic payment transaction authentication based on a cryptographic challenge using a user device, that includes: i) obtaining a payment card information associated with a payment card for storing the payment card with an application associated with the user device; ii) checking whether an attribute certificate issued by an issuing party for the user matches with the payment card information obtained from the payment card; (iii) storing the payment card for a user on a blockchain if the attribute certificate matches with the payment card information; iv) signing a record on the blockchain to obtain a signed record; v) obtaining the cryptographic challenge from the relying party device if the payment card is stored with the blockchain; and vi) transmitting a response to the cryptographic challenge to the relying party device.