Real-time cross-border funds settlement is becoming a necessity for financial institutions owing to the demands of their customers who want almost immediate payment option that some firms are unable to provide.
Today’s settlements systems, no doubt are becoming outstanding owing to the provision made available by companies like Ripple (XRP) to tackle the embattled SWIFT network that has been using archaic means to resolve cross-border payment.
Tas Group, a firm that has been collaborating with SWIFT for over 10 years, indicates in its update on Ripple (XRP) partnership that the firms solves 5 age-long problems suffered by cross-border remittance.
The first among them, the update mention is speed. In the past, it takes nothing less than 2 days to settle payment, and up till today, some cross-border remittance services still take nothing less than 7 days.
However, with the invention of Ripple blockchain technology, it takes at most five second to settle payments globally.
Not only that, customers complain of high transaction fees, interestingly, the advent of Ripple has made it almost free.
Also, Tas group mention that there is costly reserve requirement for liquidity. With the tools provided by Ripple, there is no need for reserve.
In the same vein, Tas mentioned the multiple failure point, which contributes a very high risk to cross-border payment. It however, pointed that Ripple offers 100% straight-through processing.
Another issue pointed by Tas Group is the reportage of payment in the old cross-border payment infrastructures, meanwhile the group said Ripple offers full-visibility that is equal to easier compliance.
Beyond the above mentioned problem, Tas said old cross-border remittance firms deal with one FX provider, however, it added that Ripple has a competitive market place available for them to strive.
Not long, Tas Group announced that Ripple will soon be launched on their platform, pointing to the startup’s efficient cross-border payment tools.