Ripple, the leader in blockchain-backed remittance services showed no interest in its rival Swift’s improved global payments innovation [gpi] service and passed it as a mere marginal improvement based on an outdated architecture.
Swift is a non-blockchain remittance service and is used as a standard in the industry. Recently, Swift has managed to upgrade its transaction speed making it less than 30 minutes for 50% of the transactions and under 24 hours for almost all the transactions. The finance firm will also roll out its gpi to 10,000 banks listed on its global network, for cross-border remittance.
Emi Yoshikawa, Ripple’s Director of joint venture partnership, on June 27th claimed to have superior features in her FinTech firm and that Swift cannot reach up to Ripple’s near-real-time transaction settlements. Emi, at EmTech Hong Kong, also said:
“Swift was built 40 or 50 years ago before the internet was created. So their architecture is very old. They realize that this is a big problem and they consider us a big competitor. They’re also trying to make a big improvement based on the existing architecture, called Swift gpi. We consider it just a marginal improvement of their existing architecture.”
She further explained that the issue of transaction efficiency and speed can only be solved by changing the entire layer of the existing infrastructure. Through this, she implied the essentiality of the blockchain technology in the industry.
Currently, Ripple is just a marginal player in this industry but has boarded on partnerships with some of the top-tier banks for its fast-paced progress.
On the other hand, though not blockchain-based, Swift is well-aware of its functioning and capabilities. It conducted its own experiments with the technology during April 2017. However, the company was not convinced and confident of backing its services by blockchain, as it is still in its budding phase.