Blockchain is not the only solution for better and faster payments
Consolidation in payments is inevitable, but while some believe that only those with state-of-the-art technology – such as blockchain – will reign victorious, that’s not the case.
A beneficiary is usually oblivious to the intricate networks that data and money flow across before cash lands in their bank account. The sender, however, is struck with dozens of choices to make with a cross-border transfer that might leave them reeling.
At this stage, a network of networks – along the lines of what Unbounded is doing – where senders can differentiate between various platforms and their offering, will be invaluable.
But what will happen as more and more payment solutions come to fruition?
There will be consolidation in the payments industry. It is inevitable.
So, while polite transaction bankers continuously talk about collaboration in payments for the benefit and the development of the industry in general, in reality only a handful of these networks will gain market share and succeed in the long run.
Transaction bankers are playing a tactical game. Some are joining forces with other institutions and consortia – because there is strength in numbers – while others wait patiently on the sidelines to jump on board once a payment platform becomes the market leader.
So many companies are experimenting with blockchain in cross-border payments right now it would be easy to think that a platform that uses this type of technology will reign victorious.