Ripple is at the forefront of the payments industry and has disrupted cross-border payments using their proprietary blockchain technology and cryptocurrency XRP. It is now planning to take new strides after the company hinted at a plan to disrupt the SMEs and industrial sector in Europe.
The Ripple insight blog, Just-in-time, details the problems faced by a lot of industry players, including large-scale industries and small-to-medium enterprises [SMEs] with respect to simplified payment solutions and the efficient allocation of monetary resources.
The blog stated:
“… it’s also essential for startups and small-to-medium enterprises (SMEs) looking to compete in a global economy, especially those based in the E.U. Europe’s many frictionless borders allow a business to source supplies from a wide range of countries and have receive them within 5-24 hours.”
Although the sector has developed over the years, it still faces huge problems associated with on-time payments. Delayed payments have the potential to impede the supply and availability of goods. This is an issue that persists with intra-country transfers as well. The aforementioned blog noted this and stated:
“Cross-border payments within the EU sometimes happen quickly but can also take up to 24 hours if the payment was initiated outside regular bank opening hours or if it’s going through a country with slower processes like Spain.”
Ripple and other players in the industry, like the CEO of Tatum Blockchain API, Jiri Kobelka, believe that the next step for these industries is to take up a blockchain-based payments system. Jiri Kobelka said:
“I believe that if more European banks use blockchain for cross-border payments and allow their SME clients to benefit from faster, cheaper remittances, it will shift Europe’s economy to the next level and open the market for opportunities in the international trade.”
Such solutions are slowly gaining more supporters as well, with EU’s Eva Kaili being one of them. Kaili recently pushed for a blockchain-based payments system at a Ripple Regionals event.
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Akash is your usual Mechie with an unusual interest in cryptos and day trading, ergo, a full-time journalist at AMBCrypto. Holds XRP due to peer pressure but otherwise found day trading with what little capital that he owns.