Home Altcoins News Ripple (XRP) Tapping Revenue Opportunity in Largest Emerging Market Corridors from SMEs

Ripple (XRP) Tapping Revenue Opportunity in Largest Emerging Market Corridors from SMEs

Ripple XRP

Ripple recognizes that small and medium-sized enterprises (SMEs) are a growing underserved market in cross-border payments.  Ripple identifies the SME market with more than $100B in potential revenue on an annual basis.  By making use of the blockchain technology, it will be possible for users to lower transaction costs, while creating lucrative opportunities for financial institutions.

In the emerging markets, SMEs are considered to provide for high-growth in revenue opportunity.  SMEs are a dynamic sector serving as a growing source for cross-border payments.

The Ripple SME White Paper states that SMEs account for nearly 60% of employment and 40% of national income.

New payment technologies make it possible for SMEs to source talent from and supplies from abroad, thus expanding their services and products to foreign markets.  McKinsey & Company have reported a (B2B) Business to Business growth in cross border payments market.  The White Paper mentions that revenues from this market will increase by 9% by 2022, touching nearly $3 trillion.

The SME B2B markets out pace (Consumer to Business) C2B, B2C (Business to Consumer, including wages and payouts) and C2C (Consumer 2 Consumer) remittances.  Thus, SMEs’ growth in the cross borders payments sector is 5 to 10% more than C2C and B2C.

Thus, financial institutions have a lot to tap in to the SME B2B cross-border payments market.  Nearly 2/3rd of the SME payments come from developed countries and the growth and profitability from the developed world is twice as in the emerging markets in the developed world.

Reportedly, most of the revenue opportunities per Ripple is found in Asia Pacific and Eastern Europe region.

Ripple are focusing on covering up for the low value cross-border flows.  The needs of the SMEs are greatly unmet by traditional systems and they are becoming increasingly demanding in real-time. Low cost and fully trackable payments on a global scale.

Despite the growing competition, cross border payments of all types are becoming attractive due to their low costs. It is becoming very attractive to providers of International Cross-Border payment Services.

Banks and Fintechs are showing their willingness to collaborate to bring in new solutions to the market to work beyond slow and expensive competition.  Fintech brings in meaningful knowledge and expertise, whereas banks bring in compliance platforms, network infrastructure, and established data-rich client relationships. 

Fintechs which have agile development capabilities and fresh perspectives to deal with customer expectations are willing to explore the quick realization of benefits for all the participants in the cross border payments process.

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James

James T, a passionate crypto journalist from South Africa, explores Litecoin, Dash, & Bitcoin intricacies. Loves sharing insights. Enjoy his work? Donate to support! Dash: XrD3ZdZAebm988BfHr1vqZZu6amSGuKR5F

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