The emergence of crypto currency has accelerated the market for cross-border payments. Visa’s response to new competitors (such as Ripple) is the launch of a new payment network: Visa B2B Connect.
On Tuesday, Visa announced the worldwide launch of the new payment service with a press release . According to Visa, this is a payment network for companies that is ideally suited for cross-border transactions. “The first of its kind,” said Visa.
Visa B2B Connect is immediately available in 30 regions. It should be available in 90 markets before the end of 2019. With the service, Visa facilitates transactions between banks, directly between client and beneficiary. The companies that have traditionally been involved in cross-border payments – and claim a part of the pie – have been taken out of it.
That may sound familiar to you. No more intermediaries. More efficient cross-border payments. A usecase for which blockchain has been used several times. From the crypto world, Ripple is the well-known name that interferes with this market. Visa also uses blockchain technology. “This is a unique example of how blockchain can transform value chains between companies,” said Marie Wieck, boss at IBM blockchain.
B2B connect uses a so-called digital identity. Sensitive data is reduced to so-called tokens. For example, transactions can be executed without revealing bank or account details. Sam Hamilton, director of Visa, states that the network “uses new elements of blockchain technology”, but does not reveal any details.
Visa’s ‘digital identity’ should not be confused with the ‘decentralized identity’ (DID). The latter stands for a solution whereby someone can identify themselves on the basis of data that they themselves have, instead of handing over that data to a third party. Microsoft recently launched such a solution on Bitcoin’s blockchain.