Visa B2B Connect – The Blockchain based B2B Payments Network
We have all transferred funds and made purchases via Visa credit and debit cards all over the world. Now, Visa brings us the Visa B2B Connect for business-to-business transactions to help make cross-border payments easier and quicker. Visa uses Distributed Ledger Technology (DLT) to record transactions occurring in the network using an open source Hyperledger fabric framework, introduced by Linux.
We also know that with Distributed Ledgers, it is almost impossible to either modify or duplicate the transaction. So, Visa has partnered with IBM blockchain to help large organizations make B2B (Business to Business) payments safe and fast, throughout the world.
Use of Crypto-currency
Visa B2B Connect uses blockchain technology to carry out financial transactions with the help of crypto-currencies. Like some payment apps, with this service, you can send money directly from source bank to beneficiary bank.
Better Security and Scalability
Visa B2B Connect is also a permissioned blockchain network, where the user decides whether or not to allow or add another user. Plus, it also has better security, as it encrypts user details assigning a unique digital identity to perform financial transactions globally. It is also highly scalable to transact larger amounts, as required for businesses.
No Two-Step Processes
Visa B2B Connect is a multilateral payment network that permits cross-border payments between the banks directly, provided if the banks are connected to this payment network. It also eliminates the need for two-or-more-step processes or multiple handoff while making payments, which leads to greater transparency.
Easy Traceability and Encryption
With the intrinsic security of blockchain being a public ledger, banks can also avoid fraudulent transactions also with the help of the encryption of user details. Transactions made using distributed ledgers are also easily traceable, as they are time-stamped and recorded in real time.
Low Transaction Cost and Time
Besides naturally enhancing security, blockchain networks also reduce the time taken to complete transactions made across borders, as there are only two or only fewer parties involved in the transaction. The most important feature of Visa B2B connect is the reduction in transaction costs, which makes it the most preferred mode of transaction for large businesses.
Visa B2B Connect has partnered with banks to pilot this project to overcome the challenges inherent in conventional cross-border payment methods as susceptibility to attacks, multiple handoffs, being time and cost-intensive, etc.
So, Visa B2B Connect uses blockchain technology to carry out cross-border transactions that are highly scalable, traceable, secure, robust and transparent. Almost all businesses, in due course, will either adapt to these technologies or, in the near future, will be forced do so via their banks themselves. So, blockchain and cryptocurrencies are here to stay, as they do have a lot of business use-cases.
Wanna set up a private or public blockchain ledger to carry out business transactions? Email us at [email protected] and visit www.twilightitsolutions.com. We’ll always be happy and delighted to fulfill your needs regarding your business processes.