Visa to Launch IBM-made Blockchain Payment System

Oct 23, 2018 at 22:07

Visa Inc. is set to launch in 2019 a blockchain-powered digital payments platform.

Called the Visa B2B Connect, the distributed ledger-based platform will allow smooth cross-border corporate transactions by sending these transactions from the bank of origin directly to the beneficiary bank.

“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,” said Kevin Phalen, global head, Visa Business Solutions, said in a statement.

“B2B Connect will facilitate payments for financial institutions for a variety of industry verticals, including supply chain, trade, institutional banking and more,”he added.

B2B Connect provides a unique identifier to ensure the security of confidential bank information.

“B2B Connect’s digital identity greatly reduces the opportunity for fraud that might otherwise exist with checks, ACH and wire transfers today, while also helping companies remain compliant as part of the regulated financial ecosystem,” continues Phalen.

By the time it is rolled out in the first quarter next year, Visa will have integrated an open source Hyperledger Fabric framework with its core assets.

Hosted by the Linux Foundation and developed by IBM, the Hyperledger Fabric will help provide an improved process to facilitate financial transactions on a scalable, permissioned network.

The work between Visa and IBM will enable our mutual financial institutional clients and ecosystem to maximize the network.

Meanwhile, Bottomline Technologies, a fintech payments provider, is poised to be Visa’s the first partner to integrate its solution with B2B Connect.

“Bottomline serves 1,200 financial institutions globally, and they are always looking to us to provide them with value-add innovations that simplify processes and increase efficiencies,” said Rob Eberle, President & CEO, Bottomline Technologies.

”We’re thrilled to work with Visa on this integration to enable our mutual financial institution clients to easily access the B2B Connect platform.”