Visa, which is one of the most popular financial services firms is putting great efforts to launch a blockchain powered digital identity system which will support cross-border payments. As per the press release, Visa is going to release the new system in Q1 of 2019.
The system is known as B2B Connect, and it will launch a blockchain based digital identity solution for financial firms to securely process cross-border payments.
Visa B2B Connect is a long-time project, as Visa's website shows that it was started way back in 2017.
During the same time, various firms such as US Commerce Bank, the Union Bank of the Philippines, the South Korean Shinhan Bank, and Singapore’s United Overseas Bank were also working with Visa on building the system and testing pilot payments. But now, it is unknown whether Visa has a different purpose for developing B2B Connect system.
How Visa will utilize Blockchain?
Currently, the system will most likely use the tokenization of sensitive information and data such as account numbers and banking details providing them a unique cryptographic identifier which will utilize transactions on the platform.
Kevin Phalen, who is the global head of the Visa Business Solutions said that the system will help to reduce fraud with the use of digital technology.
”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,” Phalen said.
He further also mentioned that the forming B2B Connect as providing “a new way for businesses to make cross-border, high-value payments – fixing broken processes and breaking down geographical barriers along the way.”
From a technical point of view, the system will incorporate Hyperledger Fabric framework (hosted by Linux Foundation and developed with the input from IBM) with Visa's “core assets,” which is declared will build a scalable permissioned network for use in the financial sector.
Jason Kelly, who is the General Manager of the IBM Blockchain services, said that”B2B Connect is one of the most powerful examples to date how blockchain is transforming payments.”
Various companies partnering with Visa
IBM and Visa will work jointly to provide their “mutual financial institutional clients and ecosystem to maximize the network.”
Bottomline Technologies, a Fintech provider, which provides services to 1,200 financial institutions as per the release is also joining hands with the Visa on the B2B Connect system, a collaboration which will allow “mutual financial institution clients” to use the system.