IBM has announced a new blockchain banking solution to help financial institutions address the processes of universal cross-border payments.
It has also teamed up with Toronto-based FinTech company Dream Payments to bring new revenue generating mobile payment offerings to financial institutions and merchants in the United States via the IBM Cloud.
IBM is working with KlickEx, a cross-border payments system delivering financial infrastructure for emerging markets, and Stellar, a non-profit building an open source blockchain network for financial services for its new system.
With international payments currently costly, laborious and error-prone, the new solution is designed to reduce the settlement time and lower the cost of completing global payments for businesses and consumers. It is already processing live transactions in 12 currency corridors across the Pacific Islands and Australia, New Zealand and the United Kingdom.?Using a blockchain distributed ledger, all parties have access and insight into the clearing and settlement of financial transactions.
It?is already processing live transactions in 12 currency corridors across the Pacific Islands and Australia, New Zealand and the United Kingdom.?Using a blockchain distributed ledger, all appropriate parties have access and insight into the clearing and settlement of financial transactions. It is designed to augment financial flows worldwide, for all payment types and values, and allows financial institutions?to?choose the settlement network of their choice for the exchange of central bank-issued digital assets.
A number of financial institutions are lending their support, by collaborating and advising in the system’s development.
Bridget van Kralingen, senior vice president of IBM Industry Platforms, said: ?With the guidance of some of the world leading financial institutions, IBM is working to explore new ways to make payment networks more efficient and transparent so that banking can happen in real-time, even in the most remote parts of the world. Making distributed ledger technologies more interoperable is the latest example of IBM leadership driving the rapid advancement of blockchain.p>
Dream Payments
Dream Payments is a payments cloud that powers mobile commerce and payment services across mobile decides and the IoT. Leading financial institutions and merchant acquirers use the company Payment-as-a-Service (PaaS) platform to provide mobile point-of-sale (POS) applications, next-generation payment terminals, and value-added services to businesses of all sizes.
Following the partnership, IBM and Dream Payments are rolling out Dream Payments Cloud to US financial institutions. The platform will enable financial institutions to provide business customers with secure mobile and digital payment services that help them go to market faster and improve customer experiences.
With this platform, which is delivered via the IBM Cloud, financial institutions can avoid investing in the expensive and lengthy IT projects required to build these services in-house according to IBM.
Frank Attaie, vice president of financial services of IBM Canada, said: ?Financial service leaders and FinTechs recognize the need for digital reinvention to compete and win in the banking market. IBM provides clients the global cloud footprint and unified architecture they need to navigate regulatory and compliance demands while improving the customer experience.p>
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