Blockchain’s Astounding Growth in B2B Payments
It’s not every day you hear about a financial sector poised to explode with value. But hold onto your ledgers; by 2024, the world of Business-to-Business (B2B) cross-border payments is expected to hit an impressive $4.4 trillion, surging from this year’s $171 billion. And it’s all thanks to the wonders of blockchain technology. Imagine sending money across borders as easily as sending a text message!
Financial Institutions and their Blockchain Transformation
According to a recent press release from Juniper Research, financial institutions are gearing up to save a whopping $7 billion by 2024. Morgane Kimmich, the report’s author, indicates that this cost reduction stems from blockchain’s superpowers: lower transaction costs, unparalleled transparency, real-time settlements, and the convenience of automated Know Your Client checks through self-sovereign identity. Sounds like a futuristic bank, doesn’t it?
Why Blockchain Beats Traditional Systems
Let’s break down why the traditional banking experience might soon feel like a horse-drawn carriage in a world full of Teslas:
- Lower Costs: A penny saved is a penny earned—unless you’re talking about cross-border transactions, where costs can really escalate. Blockchain trims those exorbitant fees down.
- Higher Transparency: No more hiding behind layers of complex agreements. Blockchain offers a clear view of every transaction.
- Real-Time Settlement: Money moves at the speed of a cheetah, not a tortoise. This means businesses can manage funds more effectively.
- Automated KYC Checks: Who doesn’t want a simpler way to verify their identity? Blockchain makes this process smoother and more secure.
Meet the Blockchain Heavyweights
If you’re wondering who’s leading the charge in blockchain solutions, look no further than the tech titan IBM. In a recent ranking, IBM clinched the top spot due to its diverse offerings and expansive client range. Following closely are:
- Infosys Finacle
- Guardtime
- R3
- Ripple
These companies are turning heads with their innovative solutions and partnerships—think financial institutions teaming up with tech powerhouses, and you’re on the right track.
Competing for the Future of Payments
As companies like IBM, Ripple, and Visa continue to implement blockchain in cross-border payments, the competition has heated up significantly. Ripple has been a frontrunner since 2012, forming a robust partnership network of over 200 financial institutions. However, with the rise of Visa B2B Connect and IBM Blockchain World Wire, the race is just getting started.
Key Partnerships Fueling Innovation
The stakes are high! Just last month, UK-based Finastra joined the RippleNet family, indicating that collaboration is the name of the game in harnessing blockchain’s true power. Who knows what other partnerships are waiting around the corner?
