Visa is the Latest in a Growing Field of Companies Using International Blockchain Payment Solutions
This week, the international payments solution and credit card company – Visa – has become the latest to launch its own international payments system for business to business transactions.
What makes this an interesting solution is that these same transactions are supported, albeit partly, on a system based upon blockchain technology. The payments platform itself is known as Visa B2B Connect and is the latest weapon in the arsenal of the United States based payments giant.
This product offers a seamless cross-border payment processing solution for internationally based businesses and clients, all without the need for undergoing an unecessarily complicated web of third party intermediary bodies.
A Product Three Years in the Making – Visa's B2B Connect
While this product may come as a surprise for some of those more tenuously involved in the world of finance and blockchain, the truth is that this has been in the back pocket of the Visa team for some time.
The company itself, having announced plans to create its own blockchain network centred around streamlining business to business payments back during 2016. The project itself, during its announcement, would be developed and implemented in collaboration with the blockchain startup company – Chain.
The kind of need for this cross border payments processing solution has been feverish for some time, according to a statement provided by Jim McCarthy, who formerly worked as the executive president for strategic partnerships and innovation at the time.
“The time has never been better for the global business community to take advantage of new payment technologies and improve some of the most fundamental processes needed to run their businesses. We are developing our new solution to give our financial institution partners an efficient, transparent way for payments to be made across the world.”
As we fast forward from this initial announcement by three years, and the company has since gone ahead with the launch of this B2B payment service, which professes to be capable of transaction settlements for any kinds of B2B payments in near real time speeds.
This is according to a blog post by the company itself back in June 11th, wherein, the company referred to its company as providing the answer to some of the issues that continue to plague cross border transactions.
This is one of the excerpts from the company statements provided at the time.
“Visa B2B Connect takes a different approach, turning weeks into one to two days. The non-card-based platform — the first of its kind — removes friction from the process by expediting transactions directly from the origin bank to the beneficiary bank — no intermediaries necessary.”
A Challenger to Ripple?
When considering the kind of target audience that these payments solutions are targetting. The question arises with regards to these kinds of challenger networks and whether they can present a serious kind of competition to the now incumbent crypto startup and payment solution – Ripple.
Since Ripple began its operations, Ripple has reiterated its desire to become the known global standard for the entire industry of international payment processing.
Even with these challengers, Ripple continues to secure partnerships with a range of banks across the world, encouraging these partners to make use of its ledger as well as payment products, including the associated cryptocurrency – XRP.
With these partnerships in mind, the question can ultimately be answered depending on the strength of the technology offered as a viable alternative to Ripple and its various products. Should any of these provide a settlement layer with a faster, more efficient, more secure and more cost-effective services. They may find themselves peeling away at Ripples hegemony.