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Ripple Labs Inc., a leading blockchain company, highlighted the major difficulties faced by small and medium enterprises (SMEs) globally with cross-border payments. The technology firm pointed out that inflation, geopolitical uncertainties, and inefficiencies in traditional banking systems can hamper expansion.
Ripple Introduces XRP-backed Solution For SMEs
The need for an exceptional cross-border payment system led Ripple to develop a nuanced approach. The technology firm introduced Ripple Payments, powered by XRP cryptocurrency, which aims to offer higher settlement speeds and lower fees for SMEs.
SMEs are increasingly expanding their businesses, but struggle with cross-border payments. Local banks can transform these global payments challenges into growth opportunities with efficient, transparent solutions. Learn how in our latest whitepaper. 📊🌎 https://t.co/9lis85IQlL
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— Ripple (@Ripple) August 30, 2024
Ripple payments can be accessed by small banks that wish to earn profits in the global payments market. In addition, the multiple complexities of the conventional system of payments have been removed. The firm added that this team-time solution is set to revolutionize cross-border payment systems.
This digital solution came after Qatar National Bank (QNB) partnered with Ripple to unveil a global strategy for cross-border payments in 2021.
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SMEs Grapple with Cross-Border Payments Intricacies
In a blog post, Ripple emphasized that the current international Business-to-Business (B2B) payment process could be more convenient. At the same time, it acknowledged that it is brimming with potential. Interestingly, this potential has spurred the Russian government and Strike, amongst others, to explore the realm of cross-border payments.
Ripple highlighted that SMEs aim to grow their businesses by venturing into global markets. In 2023, Mastercard reported a 50% increase in SMEs conducting international business compared to 2021. This surge significantly impacts the cross-border payment market, which exceeds $17 trillion annually.
Usually, SMEs rely on local and international banks to conduct cross-border payments, but not all regions have robust banking systems. This factor is merely one element influencing the global payment process. Others are liquidity and settlement risks and regional regulations.
XRP Payment Solution Adheres to Compliance Regulations
The company noted that adhering to regulatory standards is crucial for any financial transaction, especially in the ever-changing crypto world. Ripple praised Ripple Payments because it complies with strict Anti-money Laundering (AML) regulations and Counter-terrorism Financing (CTF) requirements.
This compliance with rules will enable SMEs to engage in international operations with hassles.
