To enhance money transfers, JP Morgan turns to blockchain

This decision is including payments originating from Taiwan banks to beneficiary banks in other markets

JP Morgan blockchain

To enhance money transfers, JP Morgan turns to blockchain . Source: pixabay.com

JP Morgan has revealed it is using blockchain technology to improve funds transfers between banking institutions worldwide.

The new solution called Confirm is expected to help reduce the number of rejected or returned transactions caused by mismatched payment details, lowering costs for both the sending and receiving banks.

This way, a global account information validation application on the Liink by JPMorganSM — partner banking institutions will be able to request confirmation of the beneficiary account information and receive responses directly from other participating banks receiving the requests in near-real-time.

Once the information is validated, the payment may be sent through JP Morgan’s global clearing solution PayDirect to route the payment in the most efficient manner.

The efficiencies offered by the Confirm and PayDirect solutions are expected to improve straight-through processing rates, increase transparency and enhance their customers’ end-to-end payment experience by reducing returns.

Testing is underway with 12 Taiwan banks, including Taiwan Cooperative Bank, First Commercial Bank, the Shanghai Commercial & Savings Bank, Mega Bank, Taipei Star Bank, Taiwan Shin Kong Bank, CTBC Bank, for money transfers via PayDirect into Indonesia.

We’ve reported that a digital bank for doctors introduced in the US.

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