Visa joins blockchain bandwagon – competes with Ripple

While many payment facilitating companies have been lagging behind in catching up with the latest blockchain trends, there are others that are finding ways to incorporate the futuristic technology into their systems. Joining the bandwagon this time is Visa, alongside other prominent names such as Paypal and Uber. Social Coin, Facebook’s soon-to-be-launched cryptocurrency, is receiving huge backing from these companies as several large corporations try to make the ground by embracing blockchain technology.

Connect will transform the way B2B transactions are carried out

If you can recall, Visa had already launched its B2B payment system earlier this month. So, what’s the difference? The long-awaited blockchain-enabled platform will facilitate direct bank to bank transfers without having to go through any aggregators. Visa’s newly launched product, Connect, will transform the way B2B transactions are carried out in the digital age. Using the progressive yet simple technology of open source ledgers, it will enable its users to transfer money from anywhere at any time. Visa’s highly coveted project, which was earlier slated to be released sometime in 2018, encountered many delays however, all hurdles were surmounted when the firm made every effort in pulling out all the stops. An announcement issued by the company said “Integrating blockchain based solutions into current business practices is a big deal for the industry and one-of-a-kind move. The firm looks forward to collaborating with industry leaders such as Commerce Bank in the US, South Korea’s Shinhan Bank and Union Bank of Philippines to name a few. The bank-to-bank transactions carried out with these partners will mark the first successful commercial launch of Connect”.

Ripple or Visa – Which is better?

As Visa marks its entry into the otherwise monopolized market of Ripple, industry experts cannot seem to stop speculating about who is going to make it big in the long run? Although Visa’s Connect is very much still in its beginning stages, its target audience is expected to be the affluent and well-established corporations. Upon running a few preliminary tests, the company will be set to make a big impression in the crypto market. As for the banks, tying up with an already established multi-financial service company like Visa will prove to be a win-win situation.

Ripple’s market capitalization is vast

On the downside, Visa is known to charge premium rates for its services, owing to its brand success. As a result, companies such as Ripple or Stellar bring about a welcome change in the traditional market. Considering the fact that Ripple has already overcome the regulatory and compliance hurdles for its previous products like X-series products, it may prove to be difficult for Visa to set foot in the blockchain-empowered industry and comply with complex international requirements. Besides, Ripple’s market capitalization is vast. All said and done, Visa’s adventurous stride towards wholeheartedly adopting blockchain technology in payment processing is a big step. However, challenging Ripple and going after its market share may not be a wise idea.