Cross-border payments which account for nearly 40% of the global payment transactional revenues, with payment flows of more than $135 trillion during 2016, is still largely reliant on a complex web of financial institutions, resulting in delays and inaccuracies.

Current cross-border remittance process is largely based on a web of financial institutions. Let?s consider an example: In order to send money, Bank A has to send a debit/credit instruction for onward transmission via NEFT/RTGS to Bank B, who does the adjustment and sends instructions to its correspondence Bank C in Bern. Lastly, Bank C transfers the value to Bank D in Germany via SEPA.

This process has many shortcomings such as:

  • Uncertainty about the timing of crediting payment to the beneficiary
  • Lack of consistency in payment processes and regulation in different countries
  • Difficulty in predicting the total cost of the transaction
  • Inability to track payments in case of problems
  • Non-fixation of exchange rate until the arrival of funds

emBlock is based on a Hyperledger Fabric and can provide real-time messaging, clearing and settlement, with the following participants:

  • Banks: Process payments for corporates and consumers
  • Payment Providers: Supply liquidity and expand payout reach for banks
  • Consumers: Making cross-border payment through their bank
  • External Validation Agencies

Business Benefits

  • No need to ensure intraday liquidity with the central bank
  • Reduction in remittance time from 2-3 days to a few seconds
  • End-to-end delivery confirmation, which is shared with the originator
  • Payment charges and FX rates used across the payment journey are made visible to the customer prior to initiating the payment

To learn more about eSigned Smart Contracts using Blockchain

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