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Visa introduces cross-border instant payment solution for businesses, integrates blockchain technology with banks

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Visa introduces cross-border instant payment solution for businesses, integrates blockchain technology with banks

In October 2016, financial services company Visa publicly launched its blockchain B2B payment service, which is now officially live.

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Visa is headquartered in California, USA, and recently launched the Visa B2B Connect network. The product was developed in collaboration with blockchain startup Chain and will serve 30 multinational companies with cross-border payment needs, with plans to expand to 90 markets by the end of 2019.

According to a report by Coindesk, Visa B2B Connect effectively helps corporate clients bypass slow correspondent banking networks by using a system powered by Distributed Ledger Technology (DLT) to provide real-time international payments.

Visa's new product aims to directly connect banks and reduce remittance costs

Kevin Phalen, Senior Vice President of Visa's Global Business Solutions, stated in a press release:

By creating a solution that enables direct bank-to-bank payments, we have reduced the friction related to cross-border transactions and eliminated pain points for businesses.

The statement indicated that Visa B2B Connect focuses on high-value B2B (business-to-business) transactions above $15,000, accounting for around 10% of the $125 trillion cross-border market. Visa also partnered with a US-based payment processor and financial technology provider FIS to serve over 20,000 financial institutions. This will enable Visa to access numerous bank clients who choose to use B2B Connect for payments.

It is worth mentioning that Chain, one of the product's partners, played a significant role in establishing early blockchain-supported financial systems and was crucial during the trial phase of Visa B2B Connect in November 2017. However, Visa ultimately turned to using Hyperledger Fabric with the help of IBM, a blockchain software built by an IBM division and hosted by Linux, which took two years to launch. Unlike blockchain in cryptocurrencies (including Bitcoin and Ethereum), Visa's product is not decentralized and remains fully controlled by Visa.

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