Reference: A vision for the future for cross-border payments. The cross border flow implies the cross-border payments that are made between two countries. The B2B (Business-to-Business) cross-border payments market is huge! No one has an exact estimate, but it is believed to be more than US$ 50 Trillion and probably closer to the US$ 100-125 […]
Category: Cross Border Payments
How is Remitly sending money directly to a customer’s bank account in India within minutes?
The is achieved by what is called a ‘pre-funded’ account. Let’s take an example. Money needs to be transferred (using Remitly) from Chicago (USA) to Mumbai (India). Traditionally, if money needs to be sent to India from the US, Remitly, every day will collect the money and then using SWIFT, send the money over to the bank […]
If I collect money from a party and send using the app of a money transmitter, is this legal?
My clients are not knowledgeable about new fintech remittance apps that are faster and cheaper. Is it illegal to make money from doing this in the US? Yes, this is clearly prohibited and illegal on two fronts. First, when you collect money that doesn’t belong to you, i.e. you are neither the originator or the funds, not […]
Will Ripple dominate cross border payments transfer market worldwide?
Hard to say. At the time of writing this answer, Ripple (payment network) has about 200 or so banks signed up. A pretty small number, but much more than any other alternative provider out there, that just got started in the last few years. With over 15,000 banks microfinance banks, credits unions, community banks, etc., some put […]
If Ripple is first mover in banking international transfers how will its competitors survive?
My personal opinion is that, despite having a first mover advantage, no one company will dominate real-time worldwide transfers. There will be geographical pocket specialists and industry vertical specialists, but no one company will be ruling cross-border transfers. It is no secret that cross-border payments are essential to any given economy. Politicizing them (as was […]
Does the recipient of a wire transfer know the senders account information?
Depends on the wire transfer (payment) system in question. However, in most cases, the answer is not necessarily. A recipient usually does not care from whichaccount the Sender sent the money. All they care about is that the money was received. Secondly, you have to ask, what purpose would it serve in providing the recipient with […]