Global credit card giant Visa has launched the first, pilot phase of its blockchain-based business-to-business payments service, B2B Connect.
The second phase entailing the commercial launch of this project is planned to occur in middle of 2018.
After the first announcement of this payment system in October 2016, VISA partnered on this project with several international banks such as US-based Commerce Bank, Shinhan Bank of South Korea, Union Bank of the Philippines, and United Overseas Bank of Singapore.
Visa plans to use the platform to facilitate cross-border payments by easing direct payments between institutions and eliminating the industry’s middleman. It is also working for the development of this project with blockchain startup Chain, and is making sure of the security of the system and the transparency of payments between enterprises.VISA stated: “Creativity, agility, and product flexibility are vital attributes as we develop the products and capabilities that will power the next generation of payments.”
Chris Wiedenmann, VP, commercial payments and products at Commerce Bank said, “In a world of increasing global interconnectedness, the ability to make and receive payments quickly and transparently is critical for companies of all sizes. Using technology based on blockchain architecture, Visa B2B Connect simplifies this process by sending transactions over Visa’s network from the bank of origin directly to the recipient bank.”
Visa’s existing partners, as well as future ones, can utilize the company’s application programming interface (API) to create their own platforms.