Visa and Chain today [October 21] announced that Visa B2B Connect – a B2B payment platform based on blockchain – will be piloted in 2017.
Visa hopes that Visa B2B Connect will give financial institutions fast and secure processing of global B2B payments. The announcement of B2B Connect also marks the second stage of Visa’s relationship with Chain. The relationship began in September 2015, when Visa announced it was part of Chain’s $30 million funding round.
Global trade, the internet and software industries have exploded over the past 15 years, but international B2B payments have lagged behind.
B2B Connect uses Chain Core, which conducts financial transactions on private blockchain networks. Visa is also developing a new transaction system for real-time exchange of international high-value payments by banks for corporate clients.
Visa B2B Connect, according to the press release, will provide accurate costing, faster transaction times and a transparent process, and one that should reduce the cost of business payments for banks and companies. The new system will be secure because all transactions are signed, cryptographically linked and recorded. Also, those using the network are known and are on private, permission-only blockchain.
Jim McCarthy, executive vice president, innovation and strategic partnerships, Visa Inc., said: “The time has never been better for the global business community to take advantage of new payment technologies and improve some of the most fundamental processes needed to run their businesses. We are developing our new solution to give our financial institution partners an efficient, transparent way for payments to be made across the world.”
Adam Ludwin, chief executive officer of Chain, said: “This is an exciting milestone in our partnership with Visa. We are privileged to support Visa’s efforts to enhance the service it provides to its clients and shape the future of international commerce with this blockchain-enabled innovation – streamlining business payments among financial institutions and their customers around the world.”