JCB, Japan’s top credit card issuer plans to adopt a new business-to-business (B2B) payment solution based on blockchain technology.
On Dec. 20 Cointelegraph Japan reported that JCB has signed a Memorandum of Understanding (MoU) with blockchain-based commercial payments platform Paystand to develop a digital payment platform for enterprises and customers in Japan.
Japan’s $10 Trillion B2B Market
The new joint development aims to cut costs and delays associated with “pre-internet technology” still practiced in Japan’s $10 trillion B2B market still dominated by cash transactions.
Paystand CEO Jeremy Almond said that only 1% of commercial payments in Japan are now made via credit cards. According to an original announcement, the new tool will purportedly be implemented to address some complications in the B2B payment market associated with Japan’s consumption tax hike adopted in early October 2019.
Paystand’s blockchain-based payment platform is now adopted by more than 150,000 companies in the U.S Canada and Mexico.
Paystand and JCB’s partnership is expected for a strong push into the Asian market as Paystand estimated JCB’s 130 million customers to account for an 80% market share.
Meanwhile, JCB was reported on developing a technology that connects separate blockchain networks in order to share their excess capacity, resolving issues that arise from heavy traffic on a single ledger.