Visa's Blockchain-Based B2B Service Is Now Live, After Three Years Of Development

The Visa B2B Connect system was publicly announced in October 2016 to become available for use in 30 markets, with the possibility of widening the scope of operations to approximately 90 domains before the end of 2019.

The B2B Connect is a services, specially crafted for the financial institutions` needs, which are Visa`s largest clients. The main goal is leveraging power, transparency and security of the blockchain technology and making the settlement process much faster.

"The launch of B2B Connect is a crucial component in our strategy to transform the way international payments are being made worldwide," said the Global Head of Visa Business Solutions, Kevin Phalen, who is also a Senior Vice President of the company.

"By providing a solution to a such major problem that encourages direct bank-to-bank transfers, we are eliminating the inconvenience to our customers in modern banking. With Visa B2B Connect, we are transforming the way payments are being made – they will be more straightforward and faster while upgrading the security to protect customers` sensitive information," added Phalen.

Visa's B2B Connect, however, is not entirely dependent on the blockchain technology. The company deployed some elements of the blockchain tech, while others remained in the well-known traditional banking domain.

Visa's initial plans included the creation of an entirely new platform through a collaborative work with the Chain startup. However, Visa opted in for a more subtle variant - utilizing components of Hyperledger Fabric, the Linux Foundation's open source DLT.

IBM, FIS, and Bottomline helped Visa with the production and development of the system. IBM has been active in the blockchain space for several years, with particular knowledge in the distributed ledger technology. IBM even launched a blockchain academy, joining forces with the University of Louisville.