US investment firm JPMorgan Chase and digital payment gateway Visa are set to intertwine their private blockchain payment gateway.
JPMorgan owns Liink, one of the world’s first blockchain-based platforms for wholesale payment transactions, and Liink works perfectly to solve delayed cross-border transaction activities often caused by a lack of accurate data. The platform allows financial institutions to conduct transactional activities securely and quickly. Last year, Visa announced the introduction of a universal payment channel. According to Visa, the platform “acts as a hub, interconnecting multiple blockchain networks and enabling the secure transfer of digital currencies“.
Partnership between JPMorgan and Visa
As part of the agreement between JPMorgan and Visa, 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.
JPMorgan has launched the secure peer-to-peer network to improve payment efficiency, prevent fraud attempts, monetize data and unlock business opportunities. The financial software has been in pilot mode since JPMorgan launched it last year. JPMorgan recently entered into a partnership agreement with Deutsche Bank to act as a founding member of the product in Europe, the Middle East and Africa. The New York-based bank is actively recruiting founding member banks in certain business areas, including APAC, LATAM and NAMR. It aims to expand its tentacles to 35,000 banks and more than two billion accounts.
Learn more about the collaboration
JPMorgan and Visa’s joint payment gateway is expected to be in 10 countries by the end of the year. The two traditional financial institutions plan to partner in more than 30 countries by 2023. Significant global coverage could be possible soon.
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.”
The corporate reorganization company founded Liink in 2017 and the network has more than 75 active participants worldwide. Since then, it has processed over 60 million messages. That’s a stellar statistic that shows the Liink network has filled several gaps in cross-border transactions. The new payment partnership between JPMorgan and Visa depicts a growing adoption of blockchain technology among traditional financial institutions.