Cross-border payments which account for nearly 40% of the global payment transactional revenues, with payment flows of more than $135 trillion during 2016, are still largely reliant on a complex web of financial institutions resulting in delays and inaccuracies.
One of the key components of a foreign trade is a Letter of credit which is issued by one bank to another to guarantee that payment will be received by the seller under a set of conditions.
Traditionally this process takes a large amount of time, numerous paper records, and a lot of back and forth between the following participants.
1) Banks: Process payments for corporates and consumers
2) Payment Providers: Supply liquidity and expand payout reach for banks
3) Consumers : Making cross – border payment through their bank
4) External Validation Agencies
eMudhra’s emBlock promises to change all such delays. Based on a Hyperledger Fabric, emBlock can help your business by:
- Providing you a fault-tolerant Blockchain system with appropriate consensus mechanism that has the capacity to scale and handle large volume transaction data.
- Implementing Blockchain on the remitter bank side to create a single view of information flow so that other parties will have a view only access to information relevant to them.
- Evaluating and implementing business logic that will eliminate manual information exchange processing of data across systems that are part of the remittance process.
- Running regulatory checks and compliances in an automatic manner ensuring a design security architecture providing privacy and confidentiality of customer data.
- Helping your bank remit payments securely in near real time with accurate cost structure and higher reliability.
With emBlock, the originating and beneficiary banks would be able to perform transactions by acting as nodes within the network, thereby avoiding the role of correspondent banks. This will ensure certainty and timeliness of transactions.
Learn how eMudhra can make blockchain right for your business by getting in touch with your account manager.
Get in touch with us at firstname.lastname@example.org to learn more.
You can also check out the brochure here