The payment processor Visa launches a blockchain system for cross-border business payments called B2B Connect. The network will provide a unique system for managing confidential information and payments for business.
It seems that Visa, which previously closely followed blockchain space, finally plunged into this industry. The global payment giant introduced its new product, B2B Connect, a platform with distributed registries that should provide “digital identification for customers”, as well as a “simple, fast and secure way” of processing cross-border payments.
The Visa company says that the blockchain technology will help it eliminate cases of fraud that could occur when using checks, automated clearing houses or bank transfers.
It should be noted that for Visa, which mainly processes traditional payments, this is the first such experience in the field of business payments. B2B Connect plans to launch in commercial operation next year.
Preparing to launch B2B Connect from Visa also involves many different partnerships for Visa. For example, the company Bottom-line Technologies, which works with 1,200 financial institutions around the world, must provide the necessary technological infrastructure.
Visa also works closely with the IBM Blockchain Service and the Hyperledger Fabric of the Linux Foundation to launch B2B Connect.
IBM Blockchain Services general manager Jason Kelly told reporters that B2B Connect is becoming one of the most prominent examples of how blockchain transforms the payment industry.
B2B Connect – not just for corporations
Currently, it is assumed that B2B Connect will be used only by large enterprises and financial institutions, but after the commercial launch, Visa plans to significantly expand the capabilities of its service.
By and large, B2B Connect intends to eliminate any intermediaries in international money transfers, the costs of which are prohibitive. It seems that B2B Connect will significantly reduce commissions.
This Visa approach can be a shock for projects like Ripple's xRapid, trying to create similar payment networks. It is also possible that there will be similar announcements from other companies introducing new technology. However, Visa’s chances of success are very high, given that the company is a heavyweight in the payments business.
The B2B Connect ad also says that Visa has been paying close attention to blockchain technology all this time.
Publication date 12/06/2019
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