Thailand’s Fourth-Largest Bank Joins Visa B2B Connect Cross-Border Payments Project

Kasikornbank has partnered with Visa to deploy their blockchain-based B2B Connect in a pilot program aimed at facilitating faster and secure cross-border payments.

0

Kasikornbank has partnered with Visa to deploy their blockchain-based B2B Connect in a pilot program aimed at facilitating faster and secure cross-border payments.

Thailand's Fourth-Largest Bank Joins Visa B2B Connect Cross-Border Payments ProjectFirst Thai bank to embrace blockchain technology

According to reports published on September 20, Kasikornbank has become the first bank in Thailand to join the project.

Such a bold move by one of Thailand’s top banks could be the catalyst for an explosion of similar partnerships, cementing the growing use of emerging technology within the country’s financial sector.

Suripong Tantiyanon, Visa’s representative in the Asian country, expressed optimism that the partnership would be successful. He noted that the B2B Connect platform leveraged blockchain technology and is designed to facilitate the “exchange of high-value” cross-border payments.

Visa manages the new blockchain-based transaction platform end-to-end and claims to significantly simplify the processing of international corporate payments.

Suripong added that participating banks and financial institutions stand to benefit from Visa’s core capabilities, including robust security measures, governance, and the emerging distributed ledger technology.

Kasikornbank’s VP Siriporn Wongtriphop said that the bank agreed to join the pilot program in order to deliver high-tech innovative solutions to its vast customer base.

He added that being part of the B2B Connect program gave the bank an upper hand as the financial sector experiences a paradigm shift in the rapidly developing cross-border payments landscape.

He said:

“As the first mover in Thailand, we believe that KBank will be a leader in the industry which benefits KBank’s enterprise clients in terms of more secured payment.”

Kasikornbank has its headquarters in Bangkok, with a study conducted earlier in the year showing that it has over $96 billion in total assets, making it the 9th largest bank in the whole of Southeast Asia.

Kbank launched its services in 1945 and has since expanded to by opening 1,120 branches.

Visa B2B Connect

Visa launched the B2B Connect pilot in 2017 with the purpose of improving how international partners managed B2B payments.

By leveraging distributed ledger technology, Visa significantly improved on payment processing times and managed to reduce the time it took for these payments to be visible.

In the end, it these improvements have helped banks and corporations reduce the number of investments and resources needed to make such payments possible, and increased international trade efficiency.

Among the first banking institutions to join the program were South Korea’s Shinhan Bank, the U.S Commerce Bank, and the Union Bank of Philippines. These financial institutions pioneered direct transactions between them using Visa’s B2B Connect platform.

Thailand’s interest in blockchain

Thailand has been slowly but surely warmed up to the use of blockchain technology, and in June listed seven cryptocurrencies used in Initial coin offerings (ICOs).

In August, the Bank of Thailand (BoT) announced that it would allow local banks to begin exploring cryptocurrencies. Under the central bank’s regulatory framework, local banks can now use subsidiaries to issue digital tokens, offer cryptocurrency brokerage services, and hold crypto assets.

Kasikornbank’s subsidiary Kasikom Asset Management Co. Ltd is, therefore, now allowed to hold cryptocurrency and offer related services, according to the Bank of Thailand’s new regulatory framework.

Leave A Reply

Your email address will not be published.