Swift Failing – Is it time for Ripple to Swipe In?
Society of Worldwide Interbank Financial Telecommunications (SWIFT) which was founded in Brussels in 1973, is faltering regarding essential transfers. The Guardian has exposed stories of failed transactions due to poor cross-border executions by the world-renowned SWIFT.
The first story is about Elaine and Malcolm Thompson’s charity, St Paul’s Children’s Project. It sends charity for school fees and other expenses to 36 orphans in Zambia. A Swift transfer of £11,000 was sent from the charity’s Barclay’s account but never reached the designated bank in Zambia.
Another story revolves around an individual named Martin Finnegan who lost £2,450 that was sent to his mother-in-law in Russia. It was promised to be credited to the Russian designated bank but a few months later and it show’s its still under transit.
The third story is about an individual who almost lost the house she was buying when the deposit of £54,000 never reached the Canadian bank. However, she breathed a sigh of relief when six weeks later it eventually arrived.
The last story is about how Laura Fulcher, had to wait for five months to enjoy her Ghanian tour when the £500 never reached. It was eventually refunded with a £50 compensation.
SWIFT’s – Traditional System
The swift operation works as a messaging service whereby financial messages such as letters of credit, payments, and securities transactions can occur between SWIFT member banks worldwide. These messages are handled by SWIFT to ensure it’s delivered as fast and secure as possible. However, is it?
SWIFT operates out of Brussels and processes data in Belgium and the United States.
It looks like SWIFT is outdated, compared to Ripple!
The technology developed by Ripple includes the Blockchain which is called RippleNet. Included in RippleNet are –
xCurrent – The currently used payment processing system mainly for financial institutions such as banks.
xRapid – Financial institutions can minimize foreign exchange transfers using XRP as a currency of transfer from one fiat currency to another.
xVia – It allows businesses to take part in the fast and cheap transfers of payments through RippleNet.
The several advantages of Ripple include speed of transaction which is estimated to take a manner of seconds and cheap fees which is a standard rate of 0.00001 XRP.
SWIFT control’s a major share of cross-border payments. However, Ripple has been actively working on partnerships with large financial institutions. It is bound to time the world reflects on a better system such as Ripple which is proven to be efficient!
Image Source – Flickr
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