Visa to Commercially Launch Blockchain Digital Identity Platform

Visa (NYSE:V) announced it is close to commercially launching its digital identity system based on blockchain in a partnership with IBM (NYSE:IBM), the digital payments company announced on Sunday (October 21).

The company said that it is aiming for a Q1 2019 release date for the Visa B2B Connect platform, which will focus on providing quick and secure global cross border business-to-business payments.

According to the release, Visa B2B Connect will be integrated with an open-source blockchain code from Hyperledger Fabric, and will partner with IBM to develop Hyperledger Fabric’s open-source framework.

Kevin Phalen, global head of Visa business solutions, said in the release the B2B Connect will provide businesses with a way to make cross border, “high value payments” without any geographical barriers.

“B2B Connect will facilitate payments for financial institutions for a variety of industry verticals, including supply chain, trade, institutional banking and more,” he added.

Features of the platform include tokenizing an organization’s business information, including banking and account number details and providing a unique identifier used to process transactions.

“Encompassing safety, security and governance all in one solution, B2B Connect’s digital identity feature will transform the way information is exchanged in business-to-business cross-border transactions,” the release says.

Jason Kelly, general manager of IBM’s blockchain services, praised the system, saying the “B2B Connect is one of the most powerful examples to date of how blockchain is transforming payments.”

“When industry leaders in payments and in financial services technology work together using open source technology, the entire business landscape stands to benefit,” Kelley said.

Sunday’s announcement comes on the two-year anniversary of Visa first introducing its B2B Connect platform in partnership with blockchain start-up, Chain.

“The time has never been better for the global business community to take advantage of new payment technologies and improve some of the most fundamental processes needed to run their businesses,” Jim McCarthy, executive vice president of innovation and strategic partnerships at Visa, said in the October 2016 release.

With commercial launch of the Visa B2B Connect platform slated for early next year, Visa has expanded its partnerships in anticipation of the launch. In addition to integrating into the Hyperledger Fabric open source platform — which is hosted by the Linux Foundation and developed by IBM — Bottomline Technologies will be Visa’s first partner to implement its solutions with B2B Connect.

Bottomline provides services to 1,200 financial institutions around the world. With its amalgamation with B2B Connect, its customers will have easy access to the platform.

Visa aims with the B2B Connect Platform to reduce friction and time on cross-border business transactions through the platform, from the bank of origin directly to the beneficiary bank. It was reported in September that Kasikornbank (BKK:KBANK) in Thailand would be the first institution to pilot the B2B Connect platform.

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Securities Disclosure: I, Jocelyn Aspa, hold no direct investment interest in any company mentioned in this article.