This article was first published on Insights – Ripple
If the COVID-19 pandemic has taught us one thing about payments, it’s that speed, reliability and on-demand access to money is critically important in a world powered by digital interaction. Our world may be forever changed, but with that change comes the potential to optimize better ways of doing day-to-day life tasks—payments included.
Given the current economic landscape, we recently posited that real-time, instantaneous payments are now more important than ever. And there’s a logical extension to this view, centered around the growing necessity and demand for affordable and immediate cross-border payments.
Solving for the glaring deficiencies of the current cross-border payment ecosystem is a challenge that must be overcome. Currently stymied by antiquated systems and a lack of universal protocols and regulations, cross-border payments are way more burdensome for the end-user than they should be.
Luckily, that tide seems to be shifting. Powerful new technologies built on blockchain and empowered with digital assets are catalyzing a sea-change in how money is moved around the world, with the potential to unlock enormous benefits for both individuals and businesses as societies worldwide continue to digitize.
A Snapshot of the Cross-Border Payment Landscape Today
If you’ve ever had to send money abroad, then you’re well aware of how frustrating the process can be. To say that the current infrastructure for cross-border payments is broken would be an understatement. It’s a very slow, expensive process—and you often don’t know if or when your money will even arrive. This sits in stark contrast to the digital services we now not only expect, but rely on more than ever.
Sending global, cross-border payments should be easy, seamless, immediate and cost-effective. However, the underlying systems, protocols and liquidity management models underpinning cross-border payments are complex, restrictive and fragmented. This means costly delays and high ...
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Insights – Ripple