SWIFT Vs. Ripple — The Importance of Speed in Cross-Border Payments
With SWIFT looking to match Ripple’s transaction settlement rate, is speed the determining factor by which the success of a payment network will be measured?
The emergence of blockchain technology has undoubtedly altered the course of global digital payment development. With the likes of Ripple and Facebook’s Libra challenging the monopoly of banks and other financial institutions, mainstream players like SWIFT, Visa and Mastercard have been forced to seek significant improvements to the legacy system.
Moving forward, the burning issue appears to be relevance. Blockchain systems run on the premise of replacing the legacy system with a more secure and efficient payment infrastructure. The mainstream players seem forced to face the quintessential evolutionary puzzle of “adapt or die out.”
Like in every technological race, competitors have to figure out which parameters will give them an edge over the rest of the playing field. Transaction speed, security and cost-efficiency are a few of the pain points in the modern-day cross-border remittance industry.
Faster, cheaper and even faster
Fast, cheap, good — the three vertices of the project management triangle arguably describe the balancing act faced by companies looking to lead the way in the developing payment sector. As reported by Cointelegraph, the Society for Worldwide Interbank Financial Telecommunications (SWIFT) recently trialed a new instant cross-border payment system that offers significant improvements in throughput time.
The move is part of SWIFT’s plans of enabling instant set