San Francisco-based cryptocurrency decacorn Ripple has published a blog post to explain how its digital solutions can help small and medium enterprises (SMEs) to overcome the difficulties they are facing when it comes to cross-border payments.
Ripple stressed that SMEs are currently striving to expand their businesses by entering global markets. 50% more SMEs are doing their businesses internationally compared to 2021, according to what Mastercard’s 2023 Borderless Payments Report says.
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
— Ripple (@Ripple) August 30, 2024
Challenges SME face with international payments
In the recently published a blog post, Ripple stated that SMEs which are looking to enter global markets are facing difficulties with cross-border payments, however, they can be transformed into growth opportunities. Local banks can help them with that, offering efficient and transparent solutions, like those offered by Ripple.
As opposed to 2021, the increased number of SMEs operating internationally are now making their contribution to the market of cross-border payments that exceeds $17 trillion every year. Ripple’s solution called Ripple Payments, the article says, can help local banks to offer SMEs to overcome all challenges they are facing while working despite inflation, geopolitical tensions, disruptions in chain supplies, and rising interest rates. These lead to higher and additional costs, longer settlement times and a total absence of transparency. Besides traditional large banks, while processing payments, keep their customers in the dark regarding the status of the transactions and are on pause during weekends and public holidays.
Ripple’s XRP-powered solution for SMEs
Ripple offers a solution that works much faster and with lower fees than those charged by large banks. Ripple Payments is a real-time solution for small banks that wish to earn profits working in the market of global payments. Ripple removes the multiple complexities of the conventional system of payments, increasing higher speed of settlement and lower fees, helping to benefit not only those small banks but also SMEs themselves.
Ripple Payments is powered by XRP cryptocurrency, when fiat funds are converted into it and then transferred from one crypto exchange collaborating with Ripple to an exchange in the destination country where they are converted from XRP into a local fiat currency for the recipient of the payment.
Ripple Payments follows all the international rules and is compliant with regulators regarding anti-money laundering and counter-financing of terrorism.