Ripple Outperforms SWIFT And Provides The Cheapest Global Remittance Solution
Ripple has been in competition with SWIFT for a really long time.
The San Francisco-based company has been trying to overcome the flaws of the traditional payments system.
Ripple offers institutions the cheapest way to move money
Now, a new report from DBS Bank, which is the largest bank in Southeast Asia says that Ripple provides institutions the most inexpensive way to make cross-border payments.
This report is ranking various traditional forms of moving money both domestically and across borders.
When it comes to international payments, the reports highlighted SWIFT as the most expensive way to move cash, and this is followed by ACH transfers, and then Ripple as the most cost-effective method.
“Normally, corporates try to minimize the cost of payments. All else being equal, domestic payments will be cheaper than cross-border payments, and this is a driver for IHB and cross-border ACH,” says the report.
The notes detail that “In general, the order of preference for domestic payments is usually:
- RTGS: most expensive
- Cheques: expensive
- Fast/immediate: Cheap
- ACH: Cheapest”
They also note that “Cheques are often free in terms of bank fees, but when corporate handling costs are included, they are expensive. Over time, fast or immediate payments will replace ACH, and probably be free.”
According to the report, here’s the order in terms of cross border payments:
- “SWIFT/ Telegraphic transfer: most expensive
- Cross-border ACH: cheaper
- Ripple: Cheapest”
- The report also analyzes cryptos compared to cash”
You should read the complete report.
Ripple vs. SWIFT
Ripple has been known to be a direct competitor to SWIFT for quite a while now.
The company has been making robust efforts in order to offer people fast, cheap, and secure cross-border transactions, and some entities have already ditched SWIFT in favor of Ripple’s solutions.
You may recall the Euro Exim Bank is one such entity and more will follow.
Andreas Townsend Author
I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.