Visa expands its DLT B2B platform with FIS deal
VISA has entered into a deal enabling FIS’ financial institution clients to have access to VISA B2B Connect. VISA B2B Connect uses blockchain to make high-value corporate payments internationally without using SWIFT. To do so, the banks of both counterparties need to be on the B2B Connect network. The relationship with FIS shortcuts the process of building the network.
FIS is a major provider of solutions to the banking sector. It recently announced plans to acquire Worldpay, had revenues of $8.4 billion in 2018 and says it moves $9 trillion of money a year.
By using VISA B2B Connect, banks can circumvent the correspondent banking network. VISA is not offering instant payments. It says the time will be significantly shorter at one to two days. The target is high-value payments so they will all be subject to money laundering procedures.
“Innovation in cross-border B2B payments is long overdue. Visa’s core strategy is to help clients and partners drastically improve their customers’ friction-filled experiences,” said Kevin Phalen, global head, Visa Business Solutions, Visa. “We are excited to continue building momentum for Visa B2B Connect and to bring speed, efficiency and transparency to our financial institution clients through our partners, like FIS, who help make transacting on our platform more accessible and seamless.”
Six months ago VISA made a big switch moving the B2B Connect technology over to IBM and Hyperledger Fabric. The previous technology partner was Chain.com which was acquired by Stellar.