Globalization is increasing at an incredible rate. As more citizens shift from one country to another, it is no surprise that they want their money to move as easily as they do. Cross-border payments have long been a struggle thanks to the laborious and expensive nature of traditional methods. However, as the world grows, so does our technology and its miraculous abilities.
In Nigeria, Flywire and Flutterwave have partnered to make cross-border payments easier. This is an obvious market for the technology to expand into, geographically speaking, as is the number one source of international students and patients from Africa with approximately 15,000 Nigerians studying at British colleges and universities throughout the 2016/2017 academic year.
The rise of blockchain is also proving to be a powerful force to help increase the simplicity of cross-border payments. According to Danny Aranda, who is the managing director behind Ripple, Ripple’s team has a plan to draw in more users by “facing real people with real problems”, reports Global Coin Report. In light of this, they have announced plans to dominate the crypto market with cross-border payments, thanks to modern technology.
To get a better idea of what the future holds for cross-border payments, we spoke with Mike Galarza, Founder & CEO of Entryless, a cloud-based financial network that allows small and medium-sized businesses to react more quickly to the needs of their buyers and suppliers.
How have cross-border payments changed over the last few/couple years? How do you envision them continuing to evolve?
“They have massively changed, and there are big disruptors to businesses in the likes of WesternUnion and others by TransferWise and other cross-border payment systems. Disruption does not respect the status quo, neither current rules or regulations, for example, cross-border payments can set up business in any country where they need to move money funds, and build a dark pool where the money gets transferred internally within the company’s books that is providing the service.
“As we move towards the future, more and more of these types of services are going to be embedded in services we use on a daily basis, banks themselves as first-line usage by end-users of cross-border payments will continue to diminish.”
What is the current trend aimed at resolving obstacles for international payments and receivables?
“Integration with accounting systems + Accessibility.”
How will blockchain play a part in revolutionizing cross-border B2B transactions?
“Blockchain will be the cornerstone for cross-border B2B transactions”
Thanks to the work of modern technology and innovative startups, we might soon be able to complete cross-border payments as easily as we can send money to other bank accounts within our own country. Thus, we can hope to see the simplicity of cross-border payments correlate with the ever-expanding advancements of globalization.