- Ripple offers local banks blockchain-based solutions for cross-border payments to help SMEs overcome the difficulties they face when dealing with traditional transactions.
- Ripple’s solutions, which help to mitigate problems like slow processing and high transaction fees are essential for SMEs who have increased their cross-border trading by 50%.
Ripple, a blockchain startup that offers enhanced services to local banks, is presenting a huge opportunity. Cross-border payment solutions for SMEs. Recently, as SMEs have been exporting more products overseas, the need for cheap and effective cross-border payments has increased.
Mastercard’s Borderless Payments Report 2023 shows that SMEs will engage in 50% more international transactions in 2023 than in 2021. Globally, these companies contribute over $17 billion in transactions. Legacy international payment solutions are slow. This causes some difficulties for SME’s.
Ripple Solves the Problem
Ripple’s report, titled “Big Opportunity in Small Business Payments” The adoption of Blockchain technology for payment solutions, which was released just recently, will provide a unique opportunity to local banks. The solutions are a great way to mitigate problems with traditional and old payment methods. financial methods. In accordance with the most recent report Crypto News Flash reveals that Russia’s Central Bank is currently working with Ripple, while also using XRP as a means of cross-border payment.
The current problems, including inflation, global tensions, issues with supply chains, and rising interest rates are exacerbated by these outdated systems. In addition, it can take up to 5 days to process a payment across the border. It can affect the cash-flow management and business relationships with vendors and suppliers.
International payment charges can range from 2 to 3% of the total transaction amount, which is a significant increase in operational costs. A third of the SMEs in this group face pressures to comply with regulations when dealing with multiple currencies.
Therefore, banks in the local area should be prepared to face these challenges as they are able to easily integrate new payment systems within existing frameworks. Ripple Payments provides local banks with a package solution that will improve their services for cross-border payments.
Offers Faster Settlements at Low Cost
The solution also improves settlement speed, reduces costs and allows the local banks to offer effective payment solutions. It also complies with all the requirements of international regulation in terms of anti-money laundering and counter financing terrorism rules.
XRP is the currency native to the Ripple payments network and can therefore complete transactions. This plays a vital role. XRP is used as a currency bridge for cross-border transactions, allowing instant settlement at lower fees between fiat currencies. CNF reports that local banks are able to eliminate nostro funds by using XRP. This results in faster and cheaper cross-border payments. report.
In the future, it is expected that B2B payment market will grow to $174 trillion. Ripple wants to increase its presence in international payments, according to reportsreported CNF. Yet, XRP’s legal status has been clarified after the Ripple lawsuit was settled earlier in this month. The blockchain payments company was fined $125 million but it was a partial win as this was less than what the SEC had demanded of $2 billion.
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Source: www.crypto-news-flash.com