During the past couple of years, international payments, transfers, and remittance ecosystem have grown-up massively. Now, with blockchain companies entering the market, the ecosystem is on a way of massive disruption. Especially, when giants like Facebook and Moneygram are allegedly mulling over tasting the waters of blockchain and digital asset based payments. Recently, Facebook announced its much awaited project Libra. At the same time, news came out that Ripple (XRP) is investing an alleged amount of $50 Million in Moneygram. Interestingly, as soon as the investment news came out, Moneygram shares more than doubled on a single day.
Ripple (XRP), Stellar (XLM), and SWIFT
It is to be noted that Ripple (XRP) has been a forerunner in the worldwide blockchain payments, though facing hard contest from Stellar (XLM) and SWIFT. Markedly, it has collaborated with over two hundred banks around the globe, including more than a few companies to facilitate Business-to-Business money movement globally. Progressively, it has stretched out its reach over more than a few countries by means of its xCurrent and xRapid platforms.
Nonetheless, things could be more competitive than ever as the leader of the traditional global payments processing segment, Visa has entered the blockchain based payments domain. Notably, VISA is a company larger than Ripple in every aspect, including capital strength and consumer base, both organizational and individual. VISA will, in particular, be targeting Business-to-Business payments in the blockchain segment, which is at this time subjugated by Ripple.
Few months ago, VISA declared that it would be integrating blockchain tech with its worldwide operations to smoothen the progress of cryptocurrency and digital asset money transfers. Presently, VISA’s block processing times are as high as one or even two days. Notably, the processing time is still lesser as compared to traditional payments. Notably, SWIFT and Ripple have comparatively lesser processing times. However, VISA may perhaps match them in a little while.
It is to be noted that VISA launched a blockchain service called B2B Connect, in recent times. The B2B Connect service is based on the Hyperledger Fabric Distributed Ledger Technology software built by Linux and IBM. Presently, B2B Connect smoothen the progress of payments straight from banks, subsequent to demonstrating the fees up front. At the time of writing, it has thirty payment corridors. Nevertheless, it plans to boost the number to ninety by the end of this year.
VISA, and SWIFT’s Services
Additionally, VISA has a gigantic benefit in terms of number of present customers it has and goodwill in the market. The company serves in over two hundred countries. This essentially gives it a colossal acceptance lead. In addition, approximately every foremost corporation across the world uses VISA’s services. What is more, VISA has the benefit of the market goodwill, which is multi-times more than SWIFT, Ripple, or any other blockchain based company. For that reason, business corporations are more probable to have faith in VISA for their business-to-business services.
What are your opinions about the contest between Ripple (XRP), VISA, SWIFT, Stellar (XLM), and other major global payment and transfer facilitator businesses? Do let us know in the comments below.