Visa Enters Cross-Border Payments Market With A New Blockchain Product, B2B Connect, to Rival Ripple?
- Visa has released a new blockchain-based product to the market
- Could Ripple be affected by this product?
Visa has recently launched a blockchain-based platform for cross-border payments between companies. This is something that could eventually harm Ripple and make the market more competitive. The goal is to reduce costs and make transactions faster.
Visa Launches New Blockchain-Based Product
The payment processing giant Visa has released a B2B platform that is going to be enhancing the efficiency of cross-border transactions for financial companies and other firms. At the moment, the new product is designed to move more than $15,000 between firms and in the future banks could be included.
The product is called B2B Connect and it has been built on top of the Hyperledger Fabric blockchain software. This will be increasing the transparency and traceability of certain payments. At the moment, there are 30 different corridors and the intention is to reach 90 by the end of this year.
This new product released by Visa could also be a problem for Swift, which is currently the largest cross-border payments company providing services to clients from all over the world. Nonetheless, Swift has already been working with blockchain technology with the blockchain consortium R3.
Ripple is one of the most popular cryptocurrency-related companies in the world. The firm wants also to provide a fast and easy way for individuals and firms to process transactions through the blockchain. In the last months, Ripple has experienced fierce competition from other market participants, including JP Morgan Chase, Swift, and Visa.
Since Ripple offers faster and cheaper products, this could help the firm remain competitive and attract new clients. At the beginning of the current year, Ripple informed that they had partnered with more than 200 companies around the world that are now using Ripple’s services.
Currently, the XRP digital currency is the third largest in the market after Bitcoin (BTC) and Ethereum (ETH). It has a market capitalization of $17.04 billion and a price of $0.4 per coin, according to CoinMarketCap.