Payments across borders are always touted as an important use case for cryptocurrencies, which can cut through the Gordian Knot of intermediaries, fees and delays. But opinion on the ground varies depending on who you talk to.
Indeed, this market – often simply referred to as remittances – is actually a group disparate business-use cases with different characteristics and requirements. Broadly speaking cross-border payments fall into four segments. Consumer to consumer payments, which are referred to as remittances; there’s supplier payments, sometimes referred to as wholesale or B2B; there’s business to contractors called payouts; and then there’s e-commerce.
The largest and most experienced payment processor using blockchain is Silicon Valley-based Align Commerce, which is focused on B2B cross-border payments involving some 60 countries. Align Commerce operates a “multi-rail” approach. The blockchain is the preferred payment rail but the company is constantly comparing methods, old and new, to find the best option for a given transaction.
Align Commerce CEO Marwan Forzley told IBTimes UK: “There is a decision-making logic that says, do I send this transaction on crypto or not. The decision is based on cost, liquidity, timing of payment – many things.”
Forzely explained that when a transaction is sourced, a decision is taken