Crypto Challenger: Visa Aims to ‘Transform Cross-Border Payments’ With Launch of Blockchain-Based Platform
Visa has introduced B2B Connect, a blockchain-based platform that will allow clients to make international payments.
According to Kevin Phalen, global head of Visa Business Solutions, the platform is a milestone for the company.
“With B2B Connect, we’re developing a new way for businesses to make cross border, high-value payments – fixing broken processes and breaking down geographic barriers along the way.”
“We’re entering into a new payment flow that Visa has never touched in the past. We’ve always been a card-based network. In this case, we’ve built a new high-value, cross-border payment network that our financial institutions can utilize for making their payments around the globe.”
Starting today, our bank clients in over 30 markets around the world will have access to Visa B2B Connect to quickly and simply make B2B payments internationally. https://t.co/Apc1j8yDDN pic.twitter.com/j6rEYW4ha1
— VisaNews (@VisaNews) June 11, 2019
Incumbents from Visa to Facebook are deploying blockchain-based solutions to rival decentralized crypto assets and new networks, such as RippleNet, which are designed to transfer value and data seamlessly across borders while bypassing traditional payment rails that carry high fees.
Corporate giants are now increasingly challenging the challengers by harnessing their existing infrastructure, massive networks, cybersecurity teams and clientele by applying the benefits of blockchain technology to either revamp or augment their business solutions.
Visa B2B Connect utilizes tokens on IBM Blockchain to facilitate transactions from the bank of origin directly to the beneficiary bank.
“The network’s unique digital identity feature tokenizes an organization’s sensitive business information, such as banking details and account numbers, giving them a unique identifier that can be used to facilitate transactions on the network. Visa B2B Connect’s digital identity feature will transform the way information is exchanged in business-to-business cross-border transactions.”
Visa, the world’s leader in digital payments, says it can handle more than 65,000 transaction messages a second. According to Sam Hamilton, senior vice president of data product development at Visa,
“This lays the foundation for a service with the potential to transform cross-border payments.”