Global payments giant Visa has turned to blockchain as a solution to verifying, securing and speeding up overseas payments.
The credit card provider’s B2B Connect, a blockchain-backed payments network for high-value business-to-business transactions, went live today following two years of development in partnership with IBM.
B2B Connect uses Linux Foundation’s Hyperledger tools – open-source blockchain created by a consortium including ANZ, IBM Cisco and Accenture.
Visa global head of business solutions Kevin Phalen told The Australian Financial Review the aim was to create a multilateral relationship network.
“Today, when a corporate makes a payment in Australia to somewhere in Europe, we don’t know how quickly that payment will be made, and for the most part it isn’t traceable…a single-solution combination of wires and messaging that had existed for more than 40 years,” Mr Phalen told the AFR.
“Now we’ve already seen around the globe other organisations trying to address some of these cross-border transaction pain points, but the difference with Visa is that we can build it at scale, on a global basis.”
The platform runs on a ‘permission network’, as opposed to a public blockchain, where permission needs to be granted in order to access payment information.
Digital identity tokens create a unique identification for organisations, with each token containing a business’ payment information like banking details, enabling transactions onB2B Connect.
Visa has its sights set on expanding B2B Connect to 90 markets by the end of the year.