New Ripple Report Says This $15 Trillion Market Could Leverage Blockchain Technology

A new report from payments giant Ripple examines how blockchain technology can increase the productivity of this lucrative industry. In a report titled Big Opportunity in Small Business Payments, Ripple discusses how small and medium businesses (SMBs) can develop cross-border payment systems by leveraging blockchain technology. Ripple's research highlights the lack of infrastructure in emerging markets for SMEs to make cross-border (B2B) payments despite being a $10-15 trillion market. “Despite recent growth, the SME market for cross-border B2B payments is hampered by a lack of traditional financial services. The fees for international payments are extremely high and in some areas cross-border services are not even ready.” Ripple's report adds that the involvement of intermediaries in existing global payment practices complicates the process. “Still, SMEs are increasingly dependent on cross-border payments for growth, both to reach new customers and to reach suppliers and outsourced employees. In addition, traditional global payment systems involve many intermediaries – this not only delays payments, but also introduces greater margin for error. Any delay between paying these suppliers and employees really impacts the ability of SMEs to sustain, grow and scale their businesses.” SMEs themselves do not believe current methods are appropriate and 71% of SMEs report “cross-border payments are problematic” According to Ripple, business-to-business payments take an average of 2-5 days, cost $30-100 or more, and exhibit an international payment error of between 4%-6%.Blockchain technology “by eliminating middlemen in the Correspondent banking system, blockchain.” Supported payments increase speed and reduce costs for providers and SMBs,” says Ripple.

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