JP Morgan and Visa connect their private blockchains for cross-border payments

Liink, formerly called Interbank Information Network, was launched by JP 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, JP Morgan’s blockchain and payments infrastructure division.

Combating failed payments

Failed payments cost the global economy USD 118 billion a year and 66% of them are caused by incorrect account information, according to JP 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. JP Morgan announced that Deutsche Bank is joining as a founding member of the Confirm product to guide its strategic expansion. The development comes shortly after Canada-based financial institution TD Securities also joined Visa’s B2B Connect to boost cross-border payments.