B2B Innovators Explore The New Payment Rail Combinations

Payment innovators are embracing the opportunities to mix payment rails old and new in search of business-to-business (B2B) solutions that can tackle longstanding friction. In this week’s look at payment rails innovation, Visa embraces blockchain and digital currency to facilitate corporate and small business payments, while CardUp supports commercial card payments by mixing payment rails for easier supplier acceptance.

Visa To Use Card Rails For Digital Currency B2B Payments

Visa confirmed this week that it is partnering with Circle Internet Financial, which operates the digital currency U.S. Dollar Coin (USDC) on the ethereum blockchain. Once Circle Internet Financial graduates Visa’s Fast Track Program, it will enable Visa to issue corporate credit cards that allow businesses to send and receive payments to other businesses using USDC.

“This will be the first corporate card that will allow businesses to be able to spend a balance of USDC,” according to Visa head of crypto Cuy Sheffield, according to Forbes. “And so we think that this will significantly increase the utility that USDC can have for Circle’s business clients.”

Velo Labs, Lightnet, Visa Collab On Blockchain SMB Payments

Visa’s work in the world of blockchain this week wasn’t limited to its collaboration with Circle. According to Tech In Asia reports, Visa is also working with Velo Labs Technology and Lightnet Group to develop new payment solutions for small businesses across Asia, allowing small and medium-sized businesses (SMBs) to use Velo’s digital tokens as collateral to get a loan or receive a line of credit. Reports noted the collaboration means the three partners will have access to real-time transaction capabilities via their combined resources of participating banks, money transfer operators and other financial service provdiers.

CardUp Mixes Rails To Enable Card Payments

Corporate buyers continue to drive commercial card adoption in order to take advantage of capital float and rewards programs. But suppliers don’t often accept cards and the interchange costs associated with them. One Singapore-based FinTech, CardUp, recently announced its launch in Hong Kong and the rollout of a solution that allows businesses to make international B2B payments using commercial cards. To address the supplier acceptance challenge, CardUp automatically shifts bank transfer or check payments to cards, while ensuring that suppliers receive those funds via the original payment method. The solution is made possible via CardUp’s status as a Visa Business Payment Solution Provider.

Iceland Debuts Instant Payments

The Central Bank of Iceland has rolled out its real-time gross settlement system and instant payment platform, recent reports said. The new payment rail supports interbank, peer-to-peer, person-to-business and business-to-business transactions, and can handle up to 5 million transactions per day.

Nacha Drives Corporate ACH Adoption

Nacha is rolling out a new resource center designed to help corporates embrace the ACH Network. Dubbed the ACH Rules for Corporates Resource Center, the program allows corporate end-users to seamlessly access information surrounding Nacha Operating Rules and updates, including expansion of Same Day ACH hours and any upcoming changes to those operating rules. The portal also includes resources for account validation, Nacha said in its announcement, with Nacha Senior Vice President, ACH Network Administration Michael Herd noting, “Nacha wants to make it as easy as possible for businesses and other organizations to stay informed of changes.”