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: