Participants on a next-generation network can transact and have the transaction visible and settled between parties in minutes or even seconds instead of days, writes Haohan Xu, the CEO of Apifiny.
Barriers are springing up everywhere for remittance companies and banks. Overcoming obstacles to cross-border payments is especially daunting right now, with slow settlement times, high fees and fresh competition bringing new challenges.
COVID-19 has brought unwelcome complications to international settlement. The World Bank in April issued an alarming report: Its experts project global remittances to decline by roughly 20% in 2020 — the sharpest drop in recent history — because of the pandemic and resulting shutdowns. This means banks are losing business from a wide swath of society: employees ranging from seasonal workers to those who work for embassies, international organizations and foreign companies.
Source: Banking Dive (2020)