Visa is preparing the blockchain-based digital identity system for cross-border payments in 2019. The system will provide blockchain-based digital identity solution for financial institutions to safely make progress on the cross-border payments. The system tokenizes business data like banking details and account numbers, offering them an individual identifier which will be necessary for transactions via platform.
Kevin Phalen, the global head at Visa Business Solutions, stated that the system will prevent the scam. He said that B2B Connect’s digital identity significantly be helpful to prevent fraud related to checks, ACH and wire transfers. Also, it will help companies to follow regulated financial ecosystem.
The solution which takes a view from a technical side will bring a Hyperledger Fabric framework, hosted by the Linux Foundation and developed with IBM, together with Visa’s “core assets” which put a huge impact on a scalable authorized network among users in the financial field.
The general manager of IBM Blockchain Services, Jason Kelley, mentioned that the system reflects one of the most powerful cases to show how blockchain is changing the payment system.
Fintech provider, Bottomline Technologies, collaborates with Visa on the B2B Connect system. This partnership will play a crucial role in enabling mutual financial institution clients to hold authorities to the system. Thailand’s fourth largest bank, Kasikornbank, also just joined the B2B Connect corporate cross-border payments initiative last month.
B2B Connect was first introduced in 2017. The U.S. Commerce Bank, Shinhan Bank from South Korea, the Union Bank of Philippines and the United Overseas Bank in Singapore are the first partners to activate pilot payment before the commercial launch. Even Visa holds a great potential with blockchain, it has shown a step back movement to the point of group cryptocurrency and Initial Coin Offering (ICO) due to the high-risk securities merchants classification which will make them intolerant for additional monitoring.
Author: Jieun Lee