A new report by Ripple (XRP) focuses on how blockchain technology can increase the efficiency of small and medium enterprises (SMEs).
In a report titled Big Opportunity in Small Business Payments, Ripple discusses how SMEs can develop cross-border payment systems using blockchain technology.
Ripple’s research highlights the lack of infrastructure in emerging markets for SMEs to make cross-border (B2B) payments between businesses, despite being a $10-15 trillion market.
“Despite the recent growth, the SME cross-border payments market remains in a poor state due to a lack of traditional financial services. The fees for international payments are extremely high, and in some areas even cross-border services are not readily available. ”
Ripple’s report adds that the inclusion of intermediaries in existing global payment practices complicates the process.
“Still, SMEs are increasingly reliant on cross-border payments to grow, both to reach new customers and to leverage suppliers and outsourced employees. This really impacts the ability of SMEs to sustain, grow and scale their businesses. ”
71% of SMEs also report that cross-border payments are problematic.
Ripple believes that blockchain technology can improve cross-border payments for SMEs.
“Blockchain powered payments eliminate intermediaries in the banking system, increasing speed and reducing cost for SMEs. 6
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