Cryptocurrencies and Blockchain to Revolutionize Cross-Border Payments, Ripple reports

A recent report by fintech giant Ripple highlights the increasing role of cryptocurrencies and blockchain technology in cross-border payments.

A recent report by fintech giant Ripple has shed light on the increasing role of cryptocurrencies and blockchain technology in cross-border payments, predicting that the value of this sector will reach the staggering sum of $250 trillion by 2027.

The global payments industry is undergoing significant transformation, with an increasing focus on ease of use and modern interfaces to meet rising consumer demand for digital banking services. However, the report notes that the underlying infrastructure that enables the transfer of money from one account to another needs improvement.

According to Ripple’s 2023 New Value Report, crypto and blockchain can enable efficient money transfer. Payments are the most likely driver of cryptocurrency adoption for 44% of respondents, and nearly half of them consider cross-border payments an important use case for cryptocurrencies.

Legacy systems for cross-border transactions are slow and costly, taking days to process. On the other hand, blockchain and digital asset technologies provide a frictionless global network that allows payments to be made and received anytime, anywhere, instantly with lower fees and full transparency.

A huge shift in finance is underway. More than 80% of global finance leaders expect to begin using crypto in their business in the next three years.

Download the 2023 New Value Report to understand how to unlock the power of blockchain for your business. https://t.co/qQSHctnKW2

— Ripple (@Ripple) July 18, 2023

The report goes on to say that mobile banking is expected to be used by over 65% of the U.S. population by 2025, while online banking in Asia is expected to reach nearly 1 billion users by 2024. However, these customers are attracted to well-designed user experiences that hide an outdated, fragmented infrastructure.

Ripple notes that cross-border payments are one of the most important and challenging aspects of the global economy. The traditional payment systems used to facilitate these payments are outdated, inefficient, and costly, relying on outdated rails built decades ago. Cross-border payments are also hindered by various factors such as global regulations, compliance requirements, currency exchange, time zones, and limited working hours. Frictionless global payments could instead be enabled by blockchain technology, which enables faster, cheaper, and more transparent payments by facilitating interoperability between tokens or chains.

According to the report, the value of cross-border payments is expected to reach $250 trillion by 2027, and more than 80% of the world’s leading financial firms expect to use cryptocurrencies in their businesses in the next three years. This highlights the potential for cryptocurrencies and blockchain technology to revolutionize cross-border payments and transform the global payments industry.