Payments firm Wirecard is expanding its presence in the B2B payments market, and is deploying blockchain technology in the process.
An announcement on the company’s website on Thursday (June 14) said Wirecard is expanding its B2B services, using blockchain to connect merchants with producers. Distributed ledger technology will also be used to facilitate the creation and transmission of smart contracts to reduce the risk of fraud, the firm noted.
“In this way, all steps along the commercial chain, from drawing up contracts to quality assurance and guarantee of origin, are mapped transparently in a decentralized database,” the firm explained, adding that supply chains today often continue to rely on traditional technologies like analog data carriers, including fax and paper.
According to Wirecard, its solution for supply chains is currently a prototype.
“We see great potential in the digitization of payment processes worldwide,” said Wirecard AG CEO Markus Braun in a statement. “Today we can use our years of experience – for example, in payment processing within the travel and mobility industry – in which fast transactions to various stakeholders play a major role in bringing this process via blockchain technology to completely new markets, which already have a great demand today. With our worldwide presence, we are in the unique position to meet this need.”
“Within the framework of the private blockchain technology, Wirecard initially maps the possibility of direct interaction via a platform, as well as the possibility for payments,” explained Wirecard Labs EVP Jörn Leogrande in another statement. “Our experience in the area of financial and internet technology puts us in a position to be able to transfer further services with concrete application examples to the blockchain.”
Leogrande offered the example of using blockchain to establish a loyalty system, managing KYC data or creating transparent banking solutions for emerging markets.
Wirecard partnered with B2B networking platform Mercato earlier this year in a previous initiative that strengthened the company’s B2B operations.