How Blockchain Impacts Cross-Border Payments
How Blockchain Impacts Cross-Border Payments
The global economy relies heavily on cross-border payments and inward remittance, allowing for the smooth flow of money between countries. These payments facilitate international trade and investment, allowing businesses to buy and sell goods and services across borders.
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Global cross-border pay, remittance banking and inward remittance economy
In 2022, international cross-border transactions will total $156 trillion. As a result, it has been confirmed as a trillion-dollar market. Per Juniper's research, B2B cross-border payments alone will be worth $35 trillion in 2022.
Major challenges to cross-border payments and remittance banking economy
As per industry studies, the two most significant factors linked to internal resistance to blockchain adoption are regulatory and compliance issues, which must be addressed. In order to overcome these challenges, there has been a push towards creating a more efficient and standardised global payment system. It includes initiatives such as the Single Euro Payments Area (SEPA) in Europe, which aims to make it easier for businesses to make and receive payments within the region.
What makes blockchain a superior solution for cross-border payments and remittance banking economy?
There are several reasons why a blockchain network may be preferred for transactions:
- Domestic retail payments to be made quickly and securely.
- Domestic wholesale and securities settlement finalised quickly and securely.
- Cross-border payments that are quick and secure.
- Gross settlement in real time between commercial, central, and independent banks.
- KYC/AML data and transaction history can be digitised, lowering the risk of fraud and facilitating real-time authentication.
- Blockchain supports a variety of payment methods: Stablecoin, tokenised fiat and cryptocurrency.
Conclusion
Needless to say, the future of Blockchain technology in the cross-border remittance domain appears brighter than ever. We hope this article provides essential insights into the sector's future and the technology you should consider adding to your current stack.
For more information on how blockchain will impact the cross-border payments landscape, get in touch with us at Fable | Leading Cross-border payment solutions provider (fablefintech.com)
To acquire the platform, book a demo with the Fable Fintech cross-border platform experts;