Visa and UnionBank announced a partnership to create a cross-border payments system built on the blockchain.
Visa and UnionBank Partnership
In a press conference, Visa and UnionBank announced Visa B2B Connect, a system that can facilitate cross-border payments system that runs on the blockchain, the technology behind bitcoin and other cryptocurrencies.
With the Visa B2B Connect system, transaction time will be completed in real time (or at least within 24 hours). This is significantly faster than the usual 3 – 5 days of processing in the conventional banking channels.
The Benefits of Blockchain
Because the data will be in the blockchain, confirmation (or authentication) of transactions will be faster. This allows the money (or payment) to be verified faster because the blockchain’s ledger will verify if transactions are correct and real. Visa Asia Pacific B2B head said in a statement:
Visa B2B Connect takes on innovative approach and eliminates friction for cross-border transactions by using distributed ledger technology to enhance the speed, security and reliability if these transactions
The system will also eliminate the need for businesses to open bank accounts in each country because the banks are already dealing with each other via the Visa Network.
Both organizations announced that Visa B2B Connect will be in full operation by the 4th quarter of this year. Visa noted it plans to partner with more banks for Visa B2B Connect.
Visa originally announced Visa B2B Connect during the FInTech Festival in Singapore way back in November 2017. On that event, it already announced UnionBank as one of its partners, with the other being South Korea’s Shinhan Bank and Singapore’s United Overseas Bank. American Express is also testing its own blockchain-based payments system.