AMNIS Treasury Services AG, a company that handles foreign currencies and international payments for small and medium-sized companies via a fully automated platform, has joined RippleNet.
Ripple vs Swift
According to the announcement:
“Banks have been relying on the SWIFT messaging system for cross-border payments for decades. The process is expensive, cumbersome and slow. This is because the SWIFT system requires a number of intermediaries between the local and the receiving bank. Each agent charges a transfer fee. This explains why it often takes 2-3 days for the money to arrive and why the amount credited is less than expected. SWIFT has recognized this problem and is now offering new opportunities with SWIFT Global Payments Innovation (gpi). In particular, payment tracking and speed have been improved. However, nothing has changed in terms of costs.
Ripple has established itself as a major challenger to the current system in recent years. Ripple turns the SWIFT payment system upside down. The removal of middlemen (in the form of local correspondent banks) makes international money transfers significantly cheaper and more efficient. Ripple sees itself as a payment network and now supports almost all currencies. The company works with banks in a targeted manner and ultimately aims to establish the Ripple protocol with them. Basically, Ripple is based on a common database or decentralized accounting. The records and transfers of value contained therein are publicly accessible.
In addition to the payment network, Ripple has its own cryptocurrency with XRP. This can be used as a trading medium to carry out money transfers within seconds 365 days a year without counterparty risk. Currently, payments can be made to Mexico, Thailand, and the Philippines. The starting currencies include EUR, USD, and JPY. Several other currencies, including the Brazilian real, will be launched during the year.”
Potential for SMEs in international payments
Companies can benefit from the use of blockchain-based payments at various levels:
- Speed: International payments are processed within seconds, 365 days a year. This ties up less liquid funds and enables faster order processing.
- Transparency: Due to the protocol, the costs are known when a payment is initiated. This not only creates transparency, but also massively reduces trouble shooting costs.
- Costs: In the Ripple network, for example, payment transaction fees are 40-60% lower than conventional payments.
In Switzerland, AMNIS is expected to be the first payment service provider to provide SMEs with access to the Ripple network in the second quarter of 2020. AMNIS thus complements the local payment options already available and also offers currency transactions and various tools to hedge currency risks.
AMNIS has been added to our Ripple ecosystem.