- Local banks can transform global payment challenges for SMEs.
- Ripple’s solution would address cross-border payment issues efficiently.
- SMEs contribute over $17 trillion in annual cross-border payments.
Ripple Labs, the FinTech company specializing in blockchain and cryptocurrency solutions for cross-border payments, has highlighted how local banks can transform global payment challenges into growth opportunities for SMEs. In a recently released whitepaper, the company detailed how its solution can tackle issues like slow, complex, and expensive global payment processing, as well as outdated financial services.
Ripple aims to provide a more efficient and modern payments system with better payment choices. The company believes such solutions are crucial to support the significant growth SMEs have seen recently, contributing over $17 trillion in annual cross-border payments.
Ripple pointed to several reports highlighting the growth in the SME sector. Mastercard’s 2023 Borderless Payments Report, for instance, noted that 50% of SMEs are conducting more international business than in 2021. Ripple also referenced one of its own recent reports that focused on the huge opportunity for local banks to offer upgraded payment methods.
According to Ripple, these banks and financial institutions can enhance their processes using Ripple’s payment protocol and outpace existing establishments, tapping into the underserved SME sector and boosting business revenue.
Ripple’s recent whitepaper underscores how its solution will enable SMEs to reach international markets, allowing them to access new customer bases and supplier relationships. This would open up new revenue streams, allowing the sector to navigate challenges like inflation, geopolitical tensions, supply chain disruptions, and rising interest rates.
Moreover, the whitepaper notes that Ripple’s solution will empower local banks to offer better cross-border payment systems to the SMEs that desperately need them. By doing so, such SMEs would attract new business and accelerate their growth.
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