Visa launches B2B Connect blockchain payment system

Lloyd Doyle
June 13, 2019

Visa is also partnering with FIS, a payment processor based in Jacksonville, Florida, to reach FIS's clientele of more than 20,000 financial institutions with B2B Connect, according to a report by Forbes.

The Visa B2B Connect network launch covers 30 trade corridors globally and is expected to expand to 90 markets by year-end, Visa said.

Currently, most cross border payments go through Swift, but Visa is hoping to break into the market which it says is worth $125trn. Kevin Phalen, global head of Visa Business Solutions, said that the new system will perform transactions between banks directly.

Initially Visa worked alongside startup Chain to create the new platform but eventually made a decision to use elements of Hyperledger Fabric, the Linux Foundation's open source distributed ledger. Visa's product isn't decentralized, since the payments giant has complete control over it.

Today, most worldwide payments are made in the SWIFT system. Besides this, it's complicated to monitor the transfer's status and anticipate the cost associated with it, including the Forex rate that comes with it.

The popular card transactions operator intends to get a significant share of the market built around cross-border, business-to-business (B2B) transactions, which is estimated at around $125 billion.

The new platform targets small financial institutions.

At the time, Visa said it planned to use BTL's interbank settlement platform Interbit to see whether blockchain can reduce costs, settlement times, and credit risks associated with global transfers between banks.

The world of B2B payments could be about to get a lot simpler for businesses of all sizes thanks to a new release from Visa.

Visa is the world's leader in digital payments.

Partners, including Bottomline, FIS and IBM are integral parts of the future scale of Visa B2B Connect.

This modern way of carrying out cross-border B2B payments will create a substantial added value for our corporate clients.

"Our ability to provide our mutual financial institution clients globally with access to Visa B2B Connect will help these banks to continue to deliver differentiated payment capabilities to their corporate customers".

Other reports by Iphone Fresh

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