Context of international and P2P remittances
Last updated
Last updated
1. Current Challenges
High Costs Traditional international remittance systems involve multiple intermediary banks, leading to high transaction fees. This is particularly burdensome for small value transfers, where fees can represent a significant portion of the amount sent.
Slow Transaction Speed Conventional systems often take several days to complete a transfer due to delays caused by intermediary banks and national settlement systems.
Lack of Transparency Existing systems make it difficult to track the progress of a transaction. When errors or failures occur, resolving them can take significant time and effort.
2. Growing Use Cases for P2P Remittances
Cross Border Worker Remittances Migrant workers sending money back to their families in their home countries represent a major use case for P2P remittances. Traditional systems often impose high costs and delays on these transfers.
Small Business Transactions Freelancers and small business owners require efficient payment methods to receive funds from international clients.
3. How Swell Addresses These Issues
Swell leverages RippleNet and SWELL tokens to solve the challenges of traditional international and P2P remittance systems in the following ways:
Low Costs By eliminating intermediary banks and SWIFT networks, Swell significantly reduces transaction fees.
Real Time Transactions With RippleNet’s liquidity network, transfers are completed within seconds.
Transparency and Traceability All transactions are traceable in real time, providing users with greater confidence and security.
4. The Future of Global Remittances
Swell is shaping the future of international and P2P remittances by enabling:
Expanded Financial Access Providing global payment solutions to individuals without access to traditional financial services.
Integration with Decentralized Finance (DeFi) Enhancing P2P remittances while expanding the use cases of crypto assets.
Sustainable Financial Models Leveraging RippleNet’s energy efficient infrastructure to create a more sustainable global payment system.
