JPMorgan collaborates with Visa Bridge and unveil a joint blockchain payment gateway to facilitate cross-border payments.
Blockchain is a technology that has been around since 2008 with the emergence of bitcoin. Today, many sectors of the economy such as banking, for example, are integrating this innovation into their traditional practices in order to gain time, efficiency and competitiveness. Indeed, the use of blockchain technology would solve some of the problems currently encountered by the traditional banking system, which transit for the most part via the interbank messaging system SWIFT.
As part of the collaboration between JPMorgan and Visa, both Liink and B2B Connect private blockchain will be used to enable international payments.
In fact, Liink is a bank payment solution designed for cross-border payments developed on Onyx, the blockchain led by JP Morgan. It also allows institutions to share financial information and validate transactions.
For its part, Visa B2B Connect is a similar solution, also developed on the blockchain, which facilitates payments between institutions across different countries, and which, according to its description, responds to certain problems specific to the traditional banking system:
“Visa B2B Connect is an innovative multilateral payment network, offering you an alternative cross-border solution that can address the unpredictability associated with current correspondent banking processes.”
Liink will protect users from fraudulent activity
The new service is expected to be operational in about 10 countries by the end of the year, and in more than 30 others by the end of 2023. Visa B2B Connect will use a new tool provided by Liink, called Confirm.
Confirm is an application that validates payment through a peer-to-peer blockchain network. The tool will validate new accounts for cross-border and approve accounts for new users. With this, institutions can easily validate account information before sending payments.
Most importantly, Confirm will reduce payment returns, often caused by missing or incorrect information. The application has a significant amount of user details. It will also pre-validate account information, allowing the sender to confirm the payee details. In addition, the Liink tool will protect users from fraudulent activities.
Confirm by Liink global head Alex Littleton said:
“Confirm’s growth is heavily influenced by network effects. Therefore, naming Deutsche Bank as a founding member, while establishing interconnectivity with the Visa B2 B blockchain, will accelerate our global adoption.”