For a quicker and consumer-friendly remittance service, Visa Inc is working on a proof of concept for Blockchain-based remittance system through its subsidiary Visa Europe.
It has already started working in collaboration with a Blockchain services provider Epiphyte to develop an alternative to conventional remittance processing.
Epiphyte is a provider of enterprise Blockchain services and recently graduated from San Matero incubator Boost VC.
Though the complete details are not yet available, Blockchain proof of concept project is being worked out in a controlled test environment stimulating real-world remittance transactions, according to a statement from Jon Downing, an innovation partner of Visa Europe Collab.
The new innovation project on Blockchain proof of concept being implemented by Visa Europe is expected to be completed in next two months.
Visa Europe is grouping over 3,800 European banks and other payment providers as part of the ongoing Blockchain project. The collaboration with Epiphyte is expected to develop a new remittance solution based on Blockchain.
The new project aims at combining Visa's long-cherished knowledge of remittance system and Blockhain technology of Epiphyte.
Visa Europe and Epiphyte are optimistic that Blockchain technology can enhance remittance services for both the receivers and senders of payments. The new remittance system will also benefit users on fees, speed and ease to use options.
Visa Europe Collab is keen on Blockchain technology for enhancing the existing process and protocols. The traditional payment process is not ideal for the ever-changing and ever-increasing demands from the customers. Particularly, for international remittances, the traditional way of sending and receiving money is not suitable and moreover it's expensive as well.
According to information being displayed on Visa Europe's website, the international transferring money to millions of families has become cumbersome, slow and expensive.
Blockchain-based remittance system enables speedy, hassle-free and low processing fee-based international remittances. Visa Europe is working this Blockchain-based project to see if it meets the expectations.
Other remittance service providers such as MoneyGram and the Western Union opine that digital currencies and Blockchain-based system may not resolve the problems in this segment.
Visa has recently bought Visa Europe for $23.4 billion in cash and stock deal.
Before this acquisition, Visa Europe was a separate publicly traded entity. Now, Visa Europe acts as the overseas brand of Visa Inc.
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