In the continuing developments around cross-border payments, Krungthai Bank (KTB) and Visa are partnering to deliver B2B cross-border using Visa B2B Connect, according to MarketScreener.
The release indicates that KTB is the first financial institution (FI) in Thailand to use the Visa B2B Connect solution, which was initially rolled out commercially prior to the pandemic in 2019. It now has more than 100 countries involved with the network.
Some readers may be familiar with the solution by virtue of our member research, which tracks developments in B2B cross-border in more detail, as well as through ongoing postings on these pages. Visa B2B Connect is a blockchain-based multilateral B2B cross-border payments network that helps optimize payments for corporates by shortening the time spent via direct connections between initiating and beneficiary banks. It utilizes blockchain for communication, audit, and security functions while settling funds in fiat currency via local electronic payment systems, including real-time schemes. Visa has added several corporate banks to its user base.
Serene Gay, Group Country Manager for Regional Southeast Asia at Visa told MarketScreener:
“As Thai businesses continue to expand globally, innovative solutions are emerging that reimagine how B2B cross-border payments are made. These evolving solutions are offering important advantages to banks and their customers by providing improved transparency, increased predictability, and ultimately profitability. We are pleased to be working with Krungthai Bank to leverage our technology and network, thereby giving Thai businesses critical tools to succeed and thrive in this ever-changing global commerce landscape. Visa’s core strategy is to help clients and partners drastically improve their customers’ friction-filled experiences. The future of B2B cross-border payments promises to be simpler, secure, lower cost, and more transparent to enhance the payment experience for everyone, everywhere.”
One of the things to be solved is the lack of transparency, which Visa B2B Connect handles by tracking payment status in near real-time. Reducing intermediaries is another advantage, as well as reducing costs.
The posting then concludes with a mention of KTB’s Digital Remittance Solutions project, which they state “aims to strengthen the bank’s international business services and offerings based on the X2G2X strategy to collaborate and explore new opportunities with partners including government agencies.”
There have been many developments in Asia as we continue to track the space and interested readers can browse through and search for others on these pages. Distributed ledger technology continues to find ways into treasury and trade services, as we also pointed out in another recent member paper.
Overview by Steve Murphy, Director, Commercial Advisory Service at Javelin Strategy & Research.