UnionBank of the Philippines is partnering up with four other yet unnamed rural banks to use the new blockchain-based payment platform by Visa.
According to the bank, the objective is to help the rural banks to improve the efficiency of their payments processes using a local platform base on top of Visa’s B2B Connect System. Said UnionBank’s senior Henry Rhoel Aguda, senior executive vice president and CTO, “We want to grow from four right now to as many as we can support.”
Visa had initially launched their B2B blockchain payments system trial back in 2017, built with a startup Chain. With the B2B system, it is expected that cross-border payments, as well as direct transactions between institutions will be more efficient as the system will effectively cut out the middleman.
B2B is set to commercially launch sometime in the middle of 2018. Other banking institutions teaming up with Visa for the B2B project include the United Overseas Bank in Singapore, Shinhan Bank in South Korea, and Commerce Bank from the United States.