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United States’ payment monster Visa has started a cross-border payment network acquired from some aspects of blockchain technology, Reuters reports June 11.
The system, called “Visa B2B Connect,” is created to facilitate international payments made by global financial operations by enabling direct interbanking transactions within businesses and beneficiaries.
According to the report, the network already covers 30 trade channels global to enable faster and cheaper cross-border payments and is supposed to expand to 90 markets by the end of 2019.
Visa B2B Connect is partially based on blockchain technology, including elements of Hyperledger, the open source distributed ledger technology (DLT) developed by a group led by the Linux Foundation, the report notes.
Perfectly, several aspects of blockchain tech were reportedly used due to its capability to transfer more data on payment than any existing payment system, global head of Visa Business Solutions Kevin Phalen said in the report.
The new network is a result of collaboration with tech global giant IBM, as well as e-payment operator Bottomline Technologies and fintech firm FIS. In order to develop the product, Visa was reportedly initially working with cryptographic ledger systems builder Chain.
Recently, Visa also partnered with the fintech operator of Japanese messaging app LINE — LINE Pay Corporation — to produce new blockchain and digital payments solutions.
Beginning this year, software startup DataLight released a report claiming that bitcoin (BTC) has the potential to replace global payment methods such as Visa and MasterCard within ten years.
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