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.