Offering Payment Services According to DLT by Visa
Visa, a pioneer company to offer payment services, launched its new service based on DLT called Visa B2B Connect. Visa is among the largest payment systems at the international level. According to the published statistics from Visa activities in last year, financial transfers to the value of more than $11.2 trillion have been carried out by it. Visa estimates that Visa B2B Connect will enter a 125-trillion-dollar market.
The purpose of this service is to provide instant payment services between businesses and beyond boundaries. This service has provided the possibility of international financial transactions between the banks, so the banks will do their customers’ financial trades directly. Currently, financial transfers among banks in different countries are conducted by Swift. This Belgian company has started working in 1973 and presently offers services to more than eleven thousand institutes. Swift makes a way for money transfer from a bank in the country of origin to another banks in the country of destination. Money movement between different banks will add a fee for each banks to it. From the one hand, the exchange rate of different currencies in various banks can enforce a higher fee on the customer. Sometimes the speed of Swift transaction will take some days. Considering the growth of financial activities in the world, few banks are connected directly in this network; this issue can increase the fee and make the transfer process time-consuming. New service of Visa brings about more transparency, speed, and lower charges comparing to Swift and challenges it. According to Kevin Phalen, global head of Visa Business Solutions (VBS), Visa B2B Connect service will terminate financial transactions at most in one or two days through creating direct communication between the banks; moreover, the possibility of observing its fee will be there for the customer before taking any measure.
The new service of Visa has been developed using Fabric Hyperledger and with the cooperation of Chain startup. This hyperledger was implanted by IBM and is supported by Linux Foundation.
On the contrary to common Blockchains, this sample doesn’t have distributed structure, and Visa has total control on it. Developing this product has begun since two years ago. The first phase of this product was administered with the cooperation of Commerce Bank, South Korea’s Shinhan Bank, Union Bank of, and United Overseas Bank. This service focuses on transactions to the value of more than $15000, which forms more than 10% of the value of this market.