JCB – a major Japan-based credit card issuing firm – is reportedly putting into consideration using a new business-to-business (B2B) payment option, powered by blockchain. 

Specifically, JCB has agreed on a Memorandum of Understanding (MoU) with Paystand – a blockchain firm specialised in commercial payments – in an attempt to introduce a digital payment system, which focuses on clients in Japan. 

The new project is particularly designed to bring down cost and delays, which can occur when the “pre-internet technology” is employed, in the existing Japanese B2B market, that has an estimated value of $10 trillion and still uses cash transactions as a preferred means of payment. 

Jeremy Almond – head of Paystand – revealed that the percentage of credit card-enabled commercial payments across Japan is as low as 1, and the team up between Paystand and JCB is a sign representing the need for a digitalised business payments from corporations. 

The new development further looks to provide a solution for numerous issues in the B2B payment market revolving around the Japan’s consumption tax hike, which happened in October this year. 

A total number of 150,000 firms from different nations – the U.S., Canada and Mexico – are using the blockchain-powered payment solution offered by Paystand, and this collaboration with JCB is an effort to expand its reach to the continent of Asia – where 130 million customers of JCB are located, taking up to 80% of market share.