J.P. Morgan and Visa are teaming up to streamline cross-border payments using their private blockchain networks, Liink and B2B Connect.
Liink, formerly called Interbank Information Network, was launched by J.P. Morgan in 2017 with the goal of making cross-border transfers more efficient. Currently, the success of global payments relies on correspondent banks coordinating across time zones and currencies. These banks typically use SWIFT’s messaging system. Confirm is Liink’s account-information validation product, which ensures transacting parties provide genuine identities and correct information. Liink is offered through Onyx, J.P. Morgan’s blockchain and payments infrastructure division.
Failed payments cost the global economy $118 billion a year; 66% of them are caused by incorrect account information, according to J.P. Morgan. Confirm is projecting it will soon validate account data from 3,500 banks, covering more than 2 billion accounts. In addition to curbing failed payments, Confirm promises to mitigate fraud by confirming that an intended recipient is the owner of the bank account to which funds are being transferred.
Visa’s cross-border payments product for financial institutions and corporate clients, B2B Connect, has adopted Confirm to validate account information. J.P. Morgan announced today that Deutsche Bank is joining as a founding member of the Confirm product to guide its strategic expansion.
“Confirm’s growth is heavily influenced by network effects,” Alex Littleton, global head of Confirm, said in a statement. “Naming Deutsche Bank as a founding member, while also establishing interconnectivity to Visa B2B’s blockchain, will accelerate our adoption on a global scale.”