- VISA has announced that it will launch a blockchain-based identity system in 2019.
- The platform will be tailored for the financial industry.
- VISA has also partnered with Fintech provider Bottomline Technologies for the project.
Cross-border payments are being changed tremendously by the use of blockchain technology. The U.K is considering it for the British-Irish border after Brexit and now VISA is getting in on the action.
It has been announced that VISA will be debuting a digital identity system for cross-border payments. This new service will be launched in the first quarter of 2019 according to an October 21 press release.
The system is designed for businesses that deal in cross-border payments and will help them verify identity and ensure more security in their payments. It will be called VISA B2B connect.
How it works
VISA B2B Connect will work by tokenizing sensitive business data which gives them a unique cryptographic identifier that will be used on the platform.
This ensures greater confidentiality and reduces the chances of fraud.
“B2B Connect’s digital identity greatly reduces the opportunity for fraud that might otherwise exist with checks, ACH and wire transfers today, while also helping companies remain compliant as part of the regulated financial ecosystem.” Said Kevin Phalen, global head at Visa Business Solutions.
The system will also combine the Hyperledger framework and Visa’s core features to create a network that is custom made for the financial sector.
The system in question is referred to as one of the most “powerful examples to date of how blockchain is transforming payments.” By Jason Kelley, general manager at IBM Blockchain Services.
In terms of obtaining clients, VISA will be partnering with Fintech provider Bottomline Technologies which has over 1,200 clients in the financial sector in order to give access to the system to the firm’s mutual clients.
Thailand’s fourth-largest bank, Kasikornbank also joined the cross-border system last month, giving the project a further boost.
The project, while about to become commercially available, wasn’t just recently designed. As far back as 2017, the system was designed and its pilot was tested out with the U.S.Commerce Bank, South Korea’s Shinhan Bank, the Union Bank of Philippines, and the United Overseas Bank in Singapore.
This comes following news of VISA, along with MasterCard, classifying ICOs and Cryptocurrency activities as “High-Risk Securities Merchants” and subjecting them to increased scrutiny.