Tranglo Describes How Digital Currencies Like Ripple (XRP) Are Transforming Global Payments.
Businesses can now complete international transactions seamlessly and in real-time. As any business leader can confirm, the best way to grow any business is to explore opportunities within and outside the business’s jurisdiction. It is a proven fact that any business that wants to hit its revenue goals faster than the competition needs to explore emerging markets and hire the best talents, even if they are overseas.
However, many businesses often face the issue of payments when conducting business transactions overseas. Common issues include delayed transactions, huge transaction fees, and disruption by third parties. For instance, there are often several intermediaries (particularly banks and payment processing platforms) when a business needs to pay their overseas talent or partners in a currency different from their local currencies.
Such transactions are often complicated involving a lot of time and fees, forcing businesses to wait for days in settling international transactions. However, the emergence of blockchain and digital currencies is bound to eradicate such problems. Through blockchain technology, businesses can conduct their transactions smoothly without payment bottlenecks.
Two years ago, top blockchain and crypto tech firm, Ripple, released a report titled “Blockchain in payments.” A summary of the report showed that businesses wouldn’t mind completing their transaction using digital currencies because it eliminates cross-border payment issues. Also, 40% of the surveyed businesses consider speed as one factor that would enable them to incorporate a blockchain-related payment system into their businesses.
Tranglo’s partnership with Ripple for efficient transaction settlement
Making cross-border payments seamless and fast is what Tranglo (a cross-border payment platform) aims to help businesses achieve. Tranglo enables the interoperability of two fiat currencies through Ripple’s native token (XRP) without the involvement of any third party.
Tranglo uses XRP because the digital asset eases and hastens exchange and settlement, decreases operational expenses, and makes pre-funding unnecessary. Hence, businesses can remit and receive funds from their overseas partners from part of the globe.
According to Tranglo “The use of XRP eliminates pre-funding, reduces operational costs, and unlocks capital to make exchange and settlement much easier and faster.”
Before the availability of Tranglo, many businesses in Southeast Asia and beyond had to spend huge amounts in developer fees to enable their payments system for cross-border transactions. However, Tranglo eliminates that issue.
Through its partnership with Ripple, transactions can be settled in real-time regardless of the local currency or where the businesses involved in the transaction are located.
“Tranglo is one of the few in the market offering true real-time transaction settlement by harnessing the power of an established local payment processing network that is undergoing digital transformation through partnerships like the ones with Ripple.”