Visa Launches New Blockchain Payments System To Compete With Other Companies

Visa Launches Blockchain Payments System B2B Connect

The payments giant Visa announced that it has launched a new blockchain payments system called B2B Connect. The information was released by Kevin Phalen, SVP, global head of Visa Business Solutions.

This is a very important milestone for Visa and a product that is already going to compete with other startups and services provided by other companies.

Working with Chain to Create a Robust Payment System

The solution aims at facilitating bank to bank transactions and eliminate the pain points that the industry is currently experiencing. Visa announced this project back in 2016 and it informed that it was working with the blockchain company Chain. The goal was to create a payments system. These firms wanted to develop a network that could facilitate instant payments and record these transactions as well.

With this new system, corporations and larger clients will be able to make cross border payments. The platform is currently operational in 30 different markets and it plans to expand it into 90 different jurisdictions by the end of the current year. Although the service is currently targeting corporate clients, banks could eventually use it in the future.

By using blockchain technology, Visa has more transparency at the time of processing payments and improved traceability of the funds. This would work in a much better way than a traditional database. According to Forbes, they have also used Hyperledger Fabric, the blockchain software that was developed by IBM.

Having Greater Transparency With Distributed Ledger Technology (DLT)

There are several financial services companies such as FIS and Bottomline Technologies that have already partnered with Visa. The goal is to enter the SWIFT inter-bank payments market. SWIFT is one of the major companies for processing cross-border payments across the globe.

Rob Eberle, president and CEO of Bottomline, commented:

“Bottomline is delighted to be working with Visa to accelerate the adoption of innovative ways for businesses to make faster cross-border payments. 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.”

Also Read: VISA and LINE Pay Partner On Blockchain-based Cross Border Payments and Crypto Transactions