The race for big wins in global payments is on and big names are ramping up for a fight.
IBM has announced its new payment network has now gone live in more than 70 countries. The new network is designed for recognized financial institutions in countries around the globe.
According to a press release, the new payment network is designed to expedite international money transfers, remittances, and payments across national borders. This new payment network from IBM is called World Wire and it comes with features such as payment messaging as well as clearing and accounts settlement on a unified single network.
Instead of global banks having to wait for fund-transfer intermediaries to give value to their expected funds, World Wire provides a single user solution. Users are able to choose the settlement asset of their choice on the platform and transfer value to anyone, anywhere on earth, on a real-time basis.
According to IBM’s General manager, the goal of the network is to deepen financial inclusion globally so that countries with fund-movement challenges can find a new support system. The network has now gone live in more than 70 countries with support for 47 currencies and at least 44 banking corporations around the world.
IBM World Wire: A Threat to SWIFT and XRP?
IBM first made known its collaboration with Stellar Lumens last September when it hinted at its move to develop its blockchain solution. World Wire operates on a real-time settlement basis. Unlike SWIFT, which takes up to three days to complete an international money transfer, users will find an immediate value reflection on the network.
Before now, SWIFT has dominated the global money transfer scene with its daily transactions topping the $5 trillion mark and no clear competition over the last decade. With the rise of cryptocurrencies, global money transfers have been consummated using the likes of Ripple’s XRP.
XRP has gained some grounds on the global stage in recent months, but it also got caught up in the melee over whether or not it passes the security test. This comes with concerns that it could face the hammer of the US Securities and Exchange Commission (SEC).
Just last month, JPM Coin was rolled out by JP Morgan and analysts claimed it could emerge as a leading global cryptocurrency. The immediate point of discussion with the development was the emergence of a new threat to Ripple’s growing market share.
As IBM’s World Wire comes to the scene with its collaboration with six other big banking brands, another window of competition has emerged. IBM signed an earlier deal with Stronghold for a US dollar-denominated stablecoin and, thus, there are six new stablecoin competitors on the radar. JPM Coin and Ripple certainly are in for a fight in their bid to dominate the global money-transfer market.
The Face of the Future
With the usability of blockchain technology becoming widespread, many institutions have been jolted to the reality that any platform’s security and scalability can be greatly enhanced. Since the blockchain effectively provides ease of access and immutability of records, the many possibilities it offers appear to be getting a second look around the world.
Clearly, the global financial system is one sector that is undergoing a disruption.
What do you think is the next big thing that could spring upon the global financial scene? Share your thoughts below.