Thailand’s state-owned Krungthai Bank is the first Thai bank to adopt Visa B2B Connect, a blockchain-based digital payment solution for high value corporate payments, which boasts Goldman Sachs as one of its users. The solution is also integrated with FIS and Infosys.
When one thinks of blockchain payments, real-time settlement often comes to mind. But that’s not the primary goal of Visa B2B Connect where payments settle within one to two days. It’s more about sidestepping the correspondent banking network and the costs of using intermediaries. Hence Visa B2B Connect is a SWIFT competitor.
What is available in near real-time is the ability to track the payment. Visa’s Serene Gay described the benefits as “transparency, increased predictability, and ultimately profitability.” Given the foreign exchange (FX) for transactions is executed via the Visa network, we’re guessing that’s a major part of Visa’s revenue from the solution.
Krungthai Bank has leaned into blockchain for years, partnering with Everex for Ethereum-based payments for Myanmar migrants in 2019. Krungthai Bank’s e-wallet solution was used for a consumer-targeted blockchain government bond issued in 2020.
The bank recently participated in a blockchain green bond trial with the Hong Kong Monetary Authority and the BIS Innovation Hub. And earlier this year, it started executing transactions on Contour, the blockchain network for Letter of Credit trade finance.