Global IT service providers are increasingly adopting blockchain technology to streamline cross-border payments within the IT sector, which is anticipated to reach a market value of $1.5 trillion by 2024. A recent guide by Ripple, “Accelerating Global Payments for Your IT Services Business,” highlighted the transformative potential of blockchain-based payments, offering a solution to the slow, costly, and opaque transactions characteristic of traditional payment systems.
The guide addresses the well-documented challenges of the legacy payment system. Businesses grappling with these outdated methods face prolonged delays, high transaction fees, and a lack of transparency. The reliance on a diminishing network of correspondent banks often results in transactions taking days for final settlement, accompanied by error rates between 4-6%. The necessity for pre-funded accounts in foreign currencies further ties up essential capital, adding to the operational inefficiency.
Per the company, Ripple Payments emerges as an enhanced alternative, promising to bridge two currencies in seconds with a fixed FX rate. The platform is expected to transform cross-border transactions, offering real-time payments and eliminating the need for pre-funding. The guide elaborates on how adopting Ripple Payments can streamline vendor payments, enable instant transaction settlements, and significantly improve transparency and cost efficiency.
Throughout the year, Ripple and the XRP Ledger have marked significant milestones, including an all-time high of 6.8 million transactions processed in a single day. These achievements underscore the ledger’s growing adoption and scalability, bolstered by independent audits from leading security firms.
Looking ahead to 2024, RippleX’s Chief Technology Officer, Joel Schwartz, shared a visionary outlook for the future of blockchain. Developments like the Cross-Chain Bridge Amendment for the XRP Ledger and an Ethereum Virtual Machine (EVM)-compatible sidechain are poised to enhance interoperability and open new possibilities within the blockchain space.
Meanwhile, Ripple rounded off the year with the builtonXRPL Challenge, inviting developers and community members to showcase their projects. This part of RippleX’s year-end community engagement offered participants the chance to win a trip to the Apex Developers Summit. This end-of-year initiative aims to inject a dose of humor and creativity into the community while showcasing the technological achievements of Ripple and the XRP Ledger.
