Don’t Settle for Expensive, Slow Global Payments
There is a Faster, Cheaper Way
Traditionally, global payment networks have been a secretive and murky domain, involving banks and other service providers that charged high fees and provided poor turnaround times. Even today, in 2019, a traditional wire transfer using SWIFT can take between 3 to 5 working days, not to mention the cost of such transactions. Other “faster” service providers such as Western Union may charge massive commissions of up to 10% of the transaction value making it prohibitively expensive for larger transactions.
Having said that, technology has spent the last few decades, the last one in particular, transforming the way we do business and transforming business models like never before. Take for example, companies like Netflix or Uber; they are delivering amazing services to a worldwide audience and customer base at prices anyone can afford.
And now, this technological revolution is coming to financial services in the form of blockchain, cryptocurrencies and other fintech innovations. There are now faster, cheaper and highly reliable ways to make global payments such as the Ripple Network.
The Mechanics of Fast & Cheap
In the past, it has often been the case where if something is good then it is either fast and expensive or cheap but slow. For example, a budget airline and a full service airline will both possibly get you to your destination on time but your experience on the budget airline, which is cheap and fast will not be good, but your experience on the full service airline, which is expensive and fast, will likely be great.
But let’s take a look at some of the new business models that technology has enabled and created, like the two earlier examples of Uber and Netflix. Both are providing services that are now cheap, fast, reliable, convenient, safe and, above all, the user experience is great. This illustrates to us that the old mechanics of fast & cheap are no longer entirely valid.
Ripple: Fast, Cheap, Reliable & Convenient
Ripple is a complete transformation from archaic global payments networks and allows money to move globally, just like information does – quickly, instantly and economically. Payments are made and settled using the cryptocurrency XRP (Ripple) over the Ripple Global Payments community network.
The Ripple Network is able to deliver on both fast and cheap, without compromising on reliability and security because unlike traditional methods, settlement of transactions using RippleNet does not involve many third parties, corresponding banks and other institutions.
For example, through its partnership with RippleNet, Euro Exim Bank is able to settle cross border transactions using the cryptocurrency Ripple (XRP), which is cheaper than traditional international wire transfers and much faster; virtually instantaneous vs. 3-5 business days.
Settling trade transactions via RippleNet is highly beneficial and attractive to emerging markets because of increased accessibility and reduced transaction costs along with an established payment ecosystem and a holistic payments process that allows for the embedding of trade finance and other messages within the transaction payload itself.
Often times, traditional payment providers will try to increase speed of delivery by maintaining pre-funded accounts at various destinations. But this is extremely costly and thus results in either high fees or less favourable exchange rates.
RippleNet finds a workaround for most of the problems faced by traditional payment networks and instead uses direct transfers of value using XRP, blockchain technology and a decentralized network for the highest levels of safety, reliability and convenience but at the lowest cost.
Among cryptocurrencies too, Ripple holds an advantage in terms of how fast and how many transactions the network can process at a time. Bitcoin transactions for example can take hours to settle, while Ripple transactions take only 3 to 4 seconds.
The technological revolution is finally coming to the financial sector and we at Euro Exim Bank are at the forefront of that transformation, utilizing cutting-edge technology to bring the world closer together and make global markets more accessible to all.
Euro Exim Bank serves a diverse range of corporate clients and import/export businesses worldwide. By taking advantage of new technology we are part of the digital revolution in international payments. Euro Exim Bank is headquartered in St. Lucia in the West Indies with a Class A banking license and a non-regulated representative office in London, England. The Bank provides essential financial services to SME’s and Corporates traditionally hampered by high costs of foreign exchange and restrictions on liquidity in challenging jurisdictions.