The Visa payment system launched a new hybrid network called “Visa B2B Connect”, developed jointly with the blockchain startup Chain. It is reported by Reuters. The platform is designed to speed up the processing of international transactions.
Visa B2B Connect provides services to commercial enterprises. The network has 30 payment corridors; by the end of the year, the company plans to increase its number to 90. Kevin Phalen, global head of Visa Business Solutions, said that the new system will perform transactions between banks directly. This will reduce the amount of commission and the time required to process transfers.
The network is a hybrid, as it includes elements of the public blockchain and Hyperledger distributed ledger technology developed by the Linux Foundation. During the process of transactions, Visa B2B Connect uses digital identifiers that store information about the bank and the account holder.
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Today, most international payments are made in the SWIFT system. With the help of innovative development, Visa intends to seize part of the market, which is estimated at $125 trillion. Some experts believe that the Visa B2B Connect network poses a threat to the XRP cryptocurrency blockchain because it serves as its main competitor. This view is supported by the fact that in May of 2019 Visa bought controlling stock in Earthport, which had a partnership agreement with Ripple.
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