Last week VISA entered into a deal enabling FIS’ financial institution clients to have access to VISA B2B Connect. VISA B2B Connect uses blockchain to make high-value corporate payments internationally without using SWIFT. To do so, the banks of both counterparties need to be on the B2B Connect network. The relationship with FIS shortcuts the process of building the network.
FIS is a major provider of solutions to the banking sector. It recently announced plans to acquire Worldpay, had revenues of $8.4 billion in 2018 and says it moves $9 trillion of money a year.
With SWIFT most banks don’t have direct banking relationships with other banks. So many payments are sent via the correspondent banking network, using an intermediary bank to make the payment. This is often the cause of slow payments and delays, particularly where there are queries which is more likely with high-value payments. By using VISA B2B Connect, banks can circumvent the correspondent banking network.
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