Currently, cross-border payments go through the 600-year-old correspondent banking system, facilitated by SWIFT messages.
This requires getting 6 players linked up – payer, payer’s bank, payer’s bank’s correspondent, beneficiary bank’s correspondent, beneficiary bank, oh - and beneficiary, of course.
Cross-border payments are currently slow, expensive and opaque. Ripple offers sub-second efficiently priced payments using a variant of blockchain technology. In response, SWIFT has launched GPII, same day credit of funds, up front pricing and payment tracking.
This article explores the two solutions, and what they mean for treasurers.
Ripple is disrupting this model with sub-second cross-border payments with automated best pricing from its network. Since Ripple payments are nearly instant, their model removes credit and liquidity risk from the process, thus lowering bank (and societal) costs considerably.
Since the network finds the best price for exchange (converting from one currency to another) and liquidity (delivering the beneficiary currency), pricing is optimised and customers are no longer locked into the wide spreads currently reflected in bank board rates.
One such fintech company that has just launched in the real-time cross borders payment space, providing a competitive alternative to the existing opaque, siloed and inefficient banking networks.
Built on a common global infrastructure and bringing new efficiencies to financial remittances by enabling near real-time settlements, improving visibility and reducing risk, Flash Payments delivers tangible advantages from both a technical and financial perspective.
Based in Sydney Australia, Flash Payments is a cutting edge fin-tech startup engineered from the ground up to deliver intelligent foreign exchange transfer services, of-course without hidden fees.
Using the innovative Ripple technology platform and XRP, Ripple's digital currency, Flash Payments delivers extraordinary transparency, speed and transactional control to users.
Flash Payments provides a lean high-performance foreign exchange transfer payment services that safely, efficiently and reliably provides users with a better customer experience.
The technology tightly integrates payments messaging with funds settlements, allowing for unprecedented visibility and performance.
Unlike the banks, Flash Payments puts their customers in control. They can choose a target conversion rate, automate the international money transfer and track their currency transfer, like a package, from start to finish.