Visa announced that it will launch its own blockchain product to make transactions cheaper and add transparency and also speed up the process of fund transferring.
News portal, Forbes reported that Visa is also working to raise the speed of transfers for its clients and make them more transparent. A short time ago, it launched Connect, a B2B DLT product. The news portal further stated that, Visa was doing this, to go up against Society for Worldwide Interbank Financial Telecommunication (SWIFT).
Speaking about the development, Kevin Phalen, Visa’s global head of business solutions said, “Its newly launched distributed ledger software facilitates direct bank connections. Financial institutions can also see payment fees upfront. Transactions settle quicker, in one to two days. The B2B Connect rails are new, so Visa isn’t leveraging the ubiquitous credit card rails it has spent decades building and maintaining. But it is leveraging its vast experience in areas like complex payments, cybersecurity and compliance.”
Phalen added that he created the Visa B2B Connect using distributed ledger technology, because it would provide more transparency and traceability, compared to a state-of-the-art database. However, unlike cryptocurrency blockchains like Bitcoin and Ethereum, Visa’s blockchain will not be decentralized.
He noted that Visa B2B Connect is focused on facilitating high-value B2B transactions of about $15,000 and up, which represents a roughly 10% chunk of the $125 trillion cross-border market and will be partnering with FIS, which is a Jacksonville-based payment processor and financial technology provider to more than 20,000 financial institutions.
Asked on why FIS does not want to build a B2B product of its own, Raja Gopalakrishnan, FIS’ international 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.”
Blockchain may not be very new for Visa, as the retail payment group has quite extensive experience with numberous cryptocurrency companies. Recently, it joined forces with LINE messenger app to facilitate blockchain and crypto payments.
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