Visa has announced a joint partnership with IBM with the objective of securing B2B payments across the world. While most banks and credits cards processors have been hostile about using and accepting cryptocurrencies as payment forms and also facilitating the purchase of cryptocurrencies, they have not been shy of using blockchain for solving other non-cryptocurrency related issues. This partnership is the proof of that, leveraging the power of blockchain to solve possible fraud issues.
Visa Solves B2B Payments
Visa has been always in the business of innovation and making payments more secure. While its stance on cryptocurrencies has not been the best at all (cryptocurrencies attack the core of its business), they have not neglected the idea of using blockchain based systems to integrate them with their operations.
This time, they are partnering with IBM to integrate an identification and authentication platform that will help them solve the problem of Business to Business payments and remittances for supply chain restocking. With the launch of its conjunct platform called B2B Connect, they seek to pioneer this market niche and take over these kinds of payments.
IBM is a tech giant that has a lot of history behind them, and lately, they have had a heavy push around blockchain and cryptocurrency operations. In an earlier article, we talked about the change that IBM has experienced and how this new business model has resulted well for them. And now their Hyperledger technology is being used to develop and serve Visa’s new app.
How Will It Work?
Visa’s new B2B Connect platform will focus on identification and integration of payments, two things that are of critical importance when it comes to restocking supply chain and avoiding fraud. With B2B Connect, Visa also wants to throw down frontiers and walls by processing payments in an easy, non-geographic dependant way.
Visa’s new system will embed an identification to each one of the businesses that are involved in the b2b payment. “With B2B Connect, we’re developing a new way for businesses to make cross-border, high-value payments – fixing broken processes and breaking down geographic barriers along the way,” said Kevin Phalen of Visa.
In the platform, every payment will be a token that can be inquired long after being issued, a thing that will simplify compliance and also will reduce or eliminate completely the possibility of fraud, because payments will be made from in the same system, through B2B Connect from the bank of origin directly to the beneficiary bank.
Expect this kind of systems to be applied more and more in the near future.