Published: Thu, June 13, 2019
Finance | By Loren Pratt

Visa Launches Long-awaited Blockchain Product for Business Clients

Visa Launches Long-awaited Blockchain Product for Business Clients

The company's representative, Kevin Phalen has mentioned that B2B Connect is a solution for the delayed payment processing systems in the current financial industry.

Visa B2B Connect at launch will serve businesses seeking to make payments to 30 markets, according to the report, with 90 more corridors expected to be covered by the close of 2019.

Visa Inc has launched a new network to help financial institutions process cross-border payments globally on behalf of corporate clients faster and at a lower operational cost, it said on Tuesday.

Visa's blockchain-powered B2B payments product has finally gone live after nearly three years in the making.

"The network's unique digital identity feature tokenises an organisation'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", the company said in a statement.

Asked on why FIS does not want to build a B2B product of its own, Raja Gopalakrishnan, FIS' worldwide head of banking and payments, said, "FIS has at times looked at introducing new networks into the market, but in most cases, we play the role of the integration partner that helps financial institutions participate in networks".

Visa has been running the B2B Connect network as a pilot program for a few years.

"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 at IBM Blockchain.

Visa said partners, including Bottomline, FIS, and IBM are integral parts of the future scale of Visa B2B Connect, with Bottomline and FIS bringing the Visa B2B Connect platform access to its participating bank clients.

The payments company has already signed deals with financial services giant FIS and Bottomline Technologies so that it can enter the SWIFT-dominated inter-bank payments market.

The Visa B2B Connect system was first revealed in 2017.

The network uses blockchain, a secure distributed database that uses cryptography to make recorded history hard to tamper with, and a unique digital identity system to keep bank transactions safe.

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