- The payment giant dives deeper into blockchain industry.
- The new platform targets small financial institutions.
One of the world’s largest payment processing companies Visa Inc. has launched a blockchain-based platform B2B Connect, Reuters reports.
The network is expected to enhance the efficiency of cross-border payments between financial institutions. Being a blockchain-based solution, B2B Connect allows to reduce the intermediary parties and offers fast and cost-efficient payments.
Currently, B2B Connect serves 30 payment corridors, though the company plans to increase the number up to 90 by the end of the year.
Basically, the new payment network is built as an alternative to the existing system where small financial institutions have to resort to services of large intermediary banks, which often leads to the delays and high transaction fees.
“By creating a solution that facilitates direct, bank to bank transactions, we are eliminating friction associated with key industry pain points,” Kevin Phalen, SVP, global head of Visa Business Solutions, explained in a statement.
Initially, B2B Connect was built on the distributed ledger technologies of startup Chain. However, ultimately the company opted for Hyperledger Fabric, the open source distributed ledger developed by Linux Foundation.
Also, recently, Visa announced a partnership with Japan’s LINE Pay Corporation. The companies are engaged in developing new blockchain and digital payments solutions.
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