Visa’s B2B Connect, a blockchain-based transaction platform for businesses, is now officially online globally.
Built in partnership with IBM using the open source Hyperledger Fabric, Visa’s B2B Connect system directly facilitates transactions between banking institutions across borders, removing the intermediary parties in between.
Having fewer handoffs between endpoints reduces security risks and speeds up the order. Since fewer parties receive the data, transactions are easily trackable in real-time. Sensitive business information is tokenized to lower chances of fraud. In addition, all participants on the blockchain network are vetted by Visa to prevent malicious actors.
“Launching Visa B2B Connect marks an important industry milestone which will accelerate the evolution of how commercial payments move around the world,” said Kevin Phalen, senior vice-president, global head of Visa Business Solutions, in a press release. “By creating a solution that facilitates direct, bank to bank transactions, we are eliminating friction associated with key industry pain points. With Visa B2B Connect, we are making payments quicker and simpler, while enhancing transparency and consistency of data.”
Because a blockchain system interconnects all the participating banks, it allows for one-to-many global transactions to be sent directly between them simultaneously.
Visa’s B2B Connect platform can also support and work alongside legacy systems, meaning banks don’t have to completely abandon older systems during the transition.
The Visa B2B Connect system was first revealed in 2017. Since then, its development was joined by IBM, FIS, Commerce Bank, Shinhan Bank, Union Bank, and the United Overseas Bank. Visa says Bottomline and FIS are currently working with their respective bank clients to integrate Visa B2B Connect.
“Enabling modernization for financial institutions across all payments systems is a key tenet of FIS’ global strategy, and we’re glad to be amongst Visa’s first partners to bring Visa B2B Connect platform access to our mutual clients at scale,” said Raja Gopalakrishnan, international head of Banking and Payments for FIS Global Financial Solutions.