VISA Partners With IBM For B2B Connect System. Since 2016, Visa has been working on its distributed ledger platform for business payments called ‘Visa B2B Connect’ and plans to launch the system next year. Visa has just announced a new partnership with IBM to create a blockchain-based digital identity system.
Visa has been working on the project with the blockchain firm Chain.com which was recently acquired by Interstellar, a for-profit business set up to promote Stellar. In turn, Stellar has a relationship with IBM.
“B2B Connect will facilitate payments for financial institutions for a variety of industry verticals, including supply chain, trade, institutional banking and more”
-Head of Global Business Solutions Kevin Phalen
VISA and IBM’s blockchain adoption
Visa believes that its blockchain ecosystem will decrease chances for fraud when processing global remittances. Also, give those that adopt it high odds of staying compliant with new and upcoming government regulations.
IBM built its Blockchain Platform using the open-source Hyperledger Fabric framework. In order to create a scalable and permission-based network, Linux hosted it and IBM developed it.
According to Visa, the digital identity feature will tokenize the sensitive data like customer banking information, account details and numbers. It then generates unique identifiers that businesses can use to facilitate global payments on the platform.
“B2B Connect’s digital identity greatly reduces the opportunity for fraud that might otherwise exist with checks, ACH and wire transfers today, while also helping companies remain compliant as part of the regulated financial ecosystem,”
-Kevin Phalen, global head, Visa Business Solutions.
New business opportunities
VISA Partners With IBM For B2B Connect System. Bottomline Technologies is one of the more prominent Fintech company’s to sign on to become a client. Also, it agreed to deliver the services to financial institutions that use their technology. According to the release, Bottomline has over 1,200 clients in the financial sector worldwide
Some of the banks that are on the board to work with Visa’s B2B Connect system include Commerce Bank in the U.S., Shinhan Bank in South Korea, and United Overseas Bank in Singapore. Visa says it has begun using its network for bank-to-bank transactions between their partners.
“IBM Blockchain Platform and Hyperledger technology are delivering real business value today and B2B Connect is one of the most powerful examples to date of how blockchain is transforming payments.”
–Jason Kelly, a representative of IBM