Visa B2B Connect

2021: Connection of Russia to the system of cross-border transfers for legal entities

On June 23, 2021, Visa announced the connection of Russia to its non-card system of cross-border transfers for legal entities B2B Connect. In addition to the Russian Federation, technology is available in 97 more countries. At the first stage, as part of the development of B2B Connect in Russia, Visa will cooperate with Modulbank.

It is claimed that Visa B2B Connect eliminates the existing restrictions in the interaction of legal entities, significantly reducing the speed of settlements. The platform also increases the transparency and predictability of the payment flow, offering suppliers and buyers the ability to track the status of payments from the sending bank to the receiving bank in almost real time, improving and simplifying the accuracy of transactions, as well as reconciliation and management of cash flows.

Visa has connected Russia to the system of international transfers for legal entities

With the Visa B2B Connect digital identification feature, which tokenizes sensitive business information such as bank details and account numbers, the company receives a unique identifier for conducting transactions in the global ecosystem, which reduces the likelihood of fraud. Visa B2B Connect also helps to overcome the limitations of closed systems, since the platform is compatible with other existing payment systems and services.

As noted in Visa, the platform significantly simplifies global corporate payments, since payments of the sending bank are made directly to the receiving bank - overcoming expensive processes and geographical barriers, as well as providing improved and continuous experience for all participants.

Visa CEO in Russia Mikhail Berner, commenting on the launch of B2B Connect in Russia, noted that the platform will allow partners to reduce the total costs of conducting international payment transactions, and their customers to get additional benefit and efficiency.^[1]

2019: Commercial launch of the platform

On June 11, 2019, Visa announced the commercial launch of the Visa B2B Connect platform, thanks to which financial institutions will be able to quickly and safely make large cross-border corporate payments at the global level. At the first stage, banks in 30 major global trade corridors, including Russia, will have access to Visa B2B Connect. By the end of 2019, the platform is expected to be launched in 90 markets around the world.

"The launch of Visa B2B Connect will accelerate the evolution of the entire global commercial payment system. By offering a solution that facilitates direct transactions between banks, we eliminate friction associated with key pain points in the industry. Visa B2B Connect accelerates and simplifies payments while increasing transparency and consistency, " data noted Kevin Falen, Senior Vice President, Business Solutions, Visa

According to the developer, Visa B2B Connect simplifies and reduces the time spent on cross-border corporate transactions, allowing you to send payments from one participating bank directly to another. The digital identification function used by the platform tokenizes confidential business information of the organization, such as bank details and account numbers, by assigning them a unique identifier that makes it easier to conduct transactions within the network. Visa B2B Connect digital identification is radically changing the system of information exchange when making cross-border corporate payments.

"As a pilot, we welcome the launch of Visa B2B Connect. Thanks to the modern method of corporate cross-border payments, our corporate customers will receive additional benefits. The speed, reliability and control of transactions along with low counterparty risks is the key to successful cooperation with foreign partners, " noted Alessandro Seralvo, Cornèrcard director and executive vice president of Cornèr Bank

As noted in Visa, an integral part of the success and future distribution of the Visa B2B Connect platform are its partners, including Bottomline, FIS and IBM. Bottomline and FIS give Visa customers access to the B2B Connect platform. In addition to its own Visa software, Visa B2B Connect uses the open source Hyperledger Fabric platform from the Linux Foundation in partnership with IBM. It helps improve the efficiency of financial transactions in a scalable network with exclusive access.

"Working together on the Visa B2B Connect platform, we combine Visa's e-payment capabilities with IBM's expertise in scaling distributed registry technology. This is a unique case where a blockchain structure can help transform value chains in the enterprise environment, ensuring the security and transparency of transactions at the global level, " noted' Marie Wiek, CEO of IBM Blockchain '

"The Visa B2B Connect platform will allow us to make more effective use of Visa's existing capabilities, gain additional experience in cybersecurity, data protection and scaling our network, as well as in combating money laundering. All this, combined with elements of distributed registry technology, will fully meet the requirements of this industry. This platform is the foundation for creating a service in the field of cross-border payments, " 'noted Sam Hamilton, Senior Vice- President, Data-Driven Product Development, Visa

2018: Integration with Hyperledger Fabric in preparation for launch

In October 2018, Visa International spoke about the blockchain system for international payments with maximum transparency and security. Before the full launch of the platform, scheduled for the first quarter of 2019, it was integrated with Hyperledger Fabric technology.

The system, called B2B Connect, is a blockchain-based digital identification solution that financial institutions can use to securely process cross-border payments between companies.

Visa introduced a blockchain system for international money transfers between companies

The system tokenizes sensitive data, such as account numbers and bank transaction details, and provides banks with a unique cryptographic identifier that will be used for transactions on the platform.

It is expected that the new technological solution will increase the efficiency of local credit and financial institutions, and small and medium-sized businesses will become its clients.  In addition, with its help, international payments will be cheaper, safer and take up to 1 day.

Digital identification of B2B Connect significantly reduces the likelihood of fraud, which otherwise can be circumvented. It will also help companies comply with the requirements of a regulated financial ecosystem, "said Kevin  Phalen, head of Visa business solutions.

According to Jason Kelley, head of IBM Blockchain Services, Visa B2B Connect is one of the "most powerful examples at the moment of how blockchain can convert payments."

Several financial organizations take part in testing B2B Connect, including the American division of Commerce Bank, the South Korean Shinhan Bank, the Philippine Union Bank of Philippines and the Singapore branch of United Overseas Bank. Banks are still conducting trial transactions.^[2]  

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