Visa doesn’t see much use for blockchain in its core business, which is transactions at scale, according to CEO Alfred Kelly.

At the JPMorgan Technology, Media and Communications conference in Boston yesterday, Kelly said:

Remember blockchain actually is not very good about facilitating low-value high-volume scale transactions, which is the core of what we do. So, you’re not going to see us make any announcements that blockchain — we’re moving a blockchain to in any way, shape or form to drive our core business.

Nevertheless, Visa like many others in the payments industry, including banks, is exploring possibilities with distributed ledger technology. One of those areas, Kelly said, is Visa’s business in the B2B sector.

On this subject, Kelly said:

We are using blockchain for our B2B product called B2B Connect. And B2B Connect is a product that allows a business to pay another business cross border. So, think of it as an option to swift, allowing the payment to flow over our rail and track the flow of those funds through a distributed ledger underpinned by blockchain.

Indeed, many are looking to blockchain technology for cross-border B2B payments. Technology conglomerate IBM has an established unit exploring the technology’s capabilities in this space.
HSBC Bank early this week announced that it was able to execute a cross-border B2B transaction in the trade finance sector.

As for Visa, it first initiated research for its blockchain B2B Product in 2016. Back in November, Visa announced that it was working with its banking partners to test bank to-bank test transactions. Some of its partners include Commerce Bank in the United States, Shinhan Bank in South Korea, Union Bank of Philippines and United Overseas Bank in Singapore.

Visa will continue to explore other capabilities with blockchain technology, Kelly said, but just how useful the credit card company will find DLT is unclear.

Right now, in the words of Kelly, blockchain to Visa can be described as “definitely not a foe, TBD about friend.”