Visa goes live with blockchain-based B2B payment service
Visa B2B Connect streamlines payments by bypassing correspondent banking system
Visa has announced that its blockchain-powered business-to-business payment service, Visa B2B Connect, is now live.
The Visa B2B Connect launch will cover more than 30 global trade corridors, with an aim to expand to as many as 90 markets by end of 2019, the company said.
“Launching Visa B2B Connect marks an important industry milestone which will accelerate the evolution of how commercial payments move around the world,” said Kevin Phalen, SVP, global head of Visa Business Solutions. “By creating a solution that facilitates direct, bank to bank transactions, we are eliminating friction associated with key industry pain points. With Visa B2B Connect, we are making payments quicker and simpler, while enhancing transparency and consistency of data.”
Visa B2B Connect removes third parties and time spent on cross-border corporate transactions by facilitating transactions from the bank of origin directly to the beneficiary bank. The network’s digital identity feature tokenises an organisation’s sensitive business information, such as banking details and account numbers, giving them a specific identifier that can be used to facilitate transactions on the network.
Partners, including Bottomline, FIS and IBM are partnering with Visa in Visa B2B Connect. Bottomline and FIS are bringing Visa B2B Connect platform access to its participating bank clients. Along with Visa’s core technology, Visa B2B Connect utilises open source Hyperledger Fabric framework from the Linux Foundation, in partnership with IBM. This helps provide an improved process to facilitate financial transactions on a scalable, permissioned network.
"Working together on Visa B2B Connect, we are combining the strengths of the world's leader in electronic payments with IBM's recognised expertise in helping scale distributed ledger technology. This is a unique example of how blockchain-based architecture can help transform B2B value chains by facilitating secure and transparent transactions globally," said Marie Wieck, general manager, IBM Blockchain.