by JP Buntinx
Blockchain technology is making headway in the financial sector as we know it today. Even credit card giant Visa is keeping close tabs on distributed ledgers. The company even went as far as announcing their international payment solution built on top of Chain’s blockchain services. In doing so, Visa wants to ensure faster, cheaper, and more transparent form of exchanging value around the world.
Under the name Visa B2B Connect, the company has announced the preview of their blockchain-based payments platform. Securing business-to-business payments on a global scale can be a tedious effort, whereby Visa wants to provide a helping hand. Taking advantage of new and exciting technologies is a must and the company feels now is the time to do so.
By working together with Chain, Visa has taken the first steps towards introducing blockchain technology in the financial sector. The new platform makes use of Chain Core, which serves as distributed ledger infrastructure tailored toward the needs of enterprises. This private blockchain network focuses on providing security and scalability, two factors that are critical to Visa’s day-to-day operations.
Visa Inc’s Executive VP of Innovation Jim McCarthy stated:
“The time has never been better for the global business community to take advantage of new payment technologies and improve some of the most fundamental processes needed to run their businesses. We are developing our new solution to give our financial institution partners an efficient, transparent way for payments to be made across the world.”
This new platform wants to improve B2B payments on a global scale. The system will be designed to offer a trusted environment since all network participants are known parties. Using a permissioned private blockchain, which remains controlled by Visa, will ensure transactions are confidential, yet transparent to the involved parties.
All transactions will be cryptographically linked, to ensure the record of transfers remains immutable. This is similar to how the Bitcoin blockchain operates, although Visa did not specify how they plan to enforce immutability at this time. Last but not least, all payments will be subject to real-time notifications to keep involved parties up-to-date about its status.
Visa plans to conduct a pilot of this new project in 2017, without specifying a more exact date. The new platform wants to improve B2B payments on a global scale and represents one of the first commercial products to emerge out of the millions of Dollars spent on investment in blockchain technology.
Introducing transparent pricing structure is the first step as well as improving the overall transaction speed. Furthermore, Visa aims to provide visibility into the transaction process itself to all of its clients. For banks and corporate clients, these efforts will help reduce the costs associated with sending and receiving business payments.