Why Is Blockchain Technology Preferred For Payment Processes?

If you are still wondering why you should adopt the use of cryptocurrency, then you probably need to go back to the basis. The crypto community is growing and advancing by the day, and one of the primary reasons for this growth is its usage as a means of payment.

Most business owners understand the charges incurred on cross-border transactions and international trades. Hence, one reason why they’ll always prefer crypto payments to fiat. One of the few cryptocurrencies with the capacity of acting as a payment settlement network for cross-border transactions is ripple.

Business owners buy ripple to settle business payments and other expenses in the business sector. This, however, doesn’t imply that other cryptos can’t be used; ripple seems to be the most appropriate given that it’s one of its objectives.

The global financial sector is becoming more connected with blockchain technology. Since blockchain technology has nothing to do with clearance and paper works, it’s stress-free and faster. Facilitating international trades and cross-border transactions have never been an easy fit buy with the right cryptocurrency like ripple; it has become less stressful and more efficient.

Making payments with the traditional fiat is not just stressful; the cost incurred in transactions by both parties are ridiculous. It becomes more unrealistic when facilitating international trade since both countries are not spending the same currencies. So, the buyer would have to calculate his expenses in the seller’s currency, which might mean extra costs incurred.

However, the homogeneity in the price of ripple and other cryptocurrencies across the world has made using blockchain technology and cryptocurrency to facilitate international trades easier and acceptable.

What is RippleNet?

As mentioned above, ripple is one of the best top 3 cryptocurrencies to use for cross-border transactions. This is because ripple itself is a payment protocol used by financial institutions for streamlining transactions. Hence, if you are a business-oriented individual or a firm looking to expand its horizon into other continents, you should invest in ripple and facilitate your transactions.

From the scope of the ripple network explained above, RippleNet is an institutional payment protocol gateway used by financial institutions and money services to provide a stress-free transaction experience for business owners both locally and internationally.

Since the RippleNet network was established, ripple has experienced more than 200 banks signing up on its blockchain to facilitate cross-border transactions. No business-oriented individual should choose the traditional fiat over cryptocurrency when it comes to cross-border transactions.

With Just a single API, RippleNet makes money transfers from you to your customer and vice versa cheaper, easier, and more reliable. Using the RippleNet services means you get to enjoy decentralized infrastructures and liquidity solutions by eliminating the need to pre-fund your accounts with On-demand liquidity. You also enjoy modernized messaging processes.

How does the RippleNet work?

First, you must understand that for those transactions facilitated with ripple, the RippleNet platform stands as the cornerstone of value in the business world. It’s a decentralized payment system that helps facilitate transactions between two parties, either locally or internationally.

The RippleNet participants are divided into two broad groups: the network users (SMEs, corporates, and consumers) and the network members (payment providers, financial institutions, and banks). The network member and the enablers of RippleNet, and as mentioned above, could be banks or payment providers.

• Banks: They help consumers and corporates facilitate payment processes. Some banks process payments for other banks, and some provide liquidity to other banks. However, it should be noted that these banks use RippleNet to improve their services to most of their customers, either existing or new.

• Payment Providers: They expand payout reach for banks to reach their capacity and look to supply liquidity.

The network users, as explained earlier, are the originators of the RippleNet, and they include the following;

• Consumers: They are the sender of payment (global) through payment providers or banks for traceable, cost-effective, real-time opportunities.

• Corporates: Mostly treasuries or departments with the capacity of sending huge disbursements across the supply chain to get more control, visibility, and tremendous capital efficiency.

• Businesses: Looking forward to sending high volume and low-value disbursements to a global base of employees, suppliers, and merchants.

• Payment providers and banks: They send payments rather than process them in other to evaluate the inefficiencies of correspondent banking and high transactional costs.

The importance of ripple to the entire banking system and the business sector cannot be over-empathized. While some business owners are seizing the opportunity to buy ripple and throw in more investments, some still doubt the existence and uniqueness of blockchain technology.