Small and medium-sized enterprises are increasingly dependent on cross-border payments; however, their needs are not met. Ripple has been able to figure out Big opportunity in small business payments.
Sydney Ifergan, the crypto expert, tweeted: “The collective strength of what small business providers can make possible for Ripple XRP when they use it to make cross border payments is huge.”
The global SME market is underserved. Both financial institutions and payment providers are looking to tap into this high-growth money-making opportunity.
Several SMEs are increasingly dependent on cross-border payments for their growth; however, 71%, according to Ripple opine that these payments are problematic. However, why are not their needs being met?
Ripple (XRP) have realized that now is the time to capitalize on the SME’s requirement for cross-border payments. SMEs provide for more than $100B in potential revenue annually. By making use of this new technology, it is possible to tap this market. Blockchain technology provides a solution to bring down costs and to eventually help create a lucrative opportunity for the financial institutions.
The high-growth revenue opportunity is seen in the dynamic force of the SME’s in the global economy.
SME’s according to the white paper, provide for nearly 60% of the employment force and to nearly 40% of national income. There has been notable growth in the B2B cross-border payments market. SME cross border payments are a significant portion of this market. Of note, the B2B markets are outperforming C2B and C2C remittances.
Financial institutions will be standing to gain a lot in terms of tapping into the SME B2B cross-border payments market. The opportunities are high in emerging markets.
Ripple (XRP) Cross Border Payments
Low-Value cross border flows and SME cross-border payments revenues in higher-margin emerging markets have been explored, and Ripple has published the white paper with figures.
The cross-border payment technology is considered to be a dramatic transformation facilitating better payment solutions to SMEs. Blockchain V. Correspondent banking has been exclusively studied.
One standardized connection, increased transparency and accountability, resiliency and fraud protection, reduced cost, speed, and rich data transfer are cited as the power points of the Ripple Payments solution.
As an alternative to pre-funding, customers will be making use of XRP in the digital asset to reduce costs further to access new markets eventually. Financial institutions, by joining Ripple, will be able to process their customer payments from across anywhere in the world instantly in a reliable and cost-effective manner.
Credit: Source link