UnionBank is joined by 4 rural banks to test Visa’s B2B Connect to facilitate the introduction of blockchain-based payments system in the country.
Visa’s B2B Connect, its blockchain-based platform to facilitate cross-border payments, has begun its pilot test in the country through its partnership with UnionBank. Since it is built on the blockchain, payments are posted in real time or the next day. This is very different from the traditional duration of transferring of money, where the receiver receives the money from the sender within 3 – 5 business days. The blockchain, because of decentralization, allows faster payments and confirmation of the authenticity of the transactions.
In other countries, Visa is partnering with banks such as the Shinhan Bank of South Korea and the United Overseas Bank of Singapore to test this payments system. Visa is expected to launch this platform officially later this 2018.
Mr. Henry Aguda, UnionBank’s Executive VP and CTO, said that helping rural banks will elevate their capabilities to become more efficient and possibly handle more transactions. Focusing on these 4 rural banks, which Mr. Aguda declined to identify, will be UnionBank’s priority. However, he said the bank is not closing its doors for more tie-ups.
UnionBank also recently announced The Ark, a project wherein transactions are done on iPads instead of usual paper slips. For more information, check out this article.