Cross Border Payments – SWIFT vs RippleNet xCurrent

Blockchain has been a buzz word for sometime, but now it has started touching our day to day life by solving actual problems.  In relation to international trade, blockchain technology has made progress in

  1. Cross Border Payments:
    1. With RippleNet – xCurrent
      • Business to Business Payment
      • Retail Payments
    2. IBM World Wire
    3. Corda Settler
  2. Trade Finance (Some of the platform)
    • Marco Polo Blockchain Platform for Open Account
    • Voltron: R3’s Corda Platform for LC
    • TradeLens – IBM & Maerks for E Bill o f Lading
    • Cargo X
    • : a platform for open account trade
    • Komgo : a solution for commodity trade finance
    • Bolero: for issuing and managing electronic bills of lading etc…

In last few years we have seen below news of Indian banks adopting blockchain.

This article is focused on RippleNet xCurrent platform (used for Cross Border Payment), how does it work for corporate payment and retail payment, what is the benefit / limitation for exporters and importers, and what is the difference between Ripple Net and SWIFT.

Competition in the cross-border payments market is on the rise between blockchain firm Ripple and payments messaging company SWIFT. Most importers / exporters are using SWIFT for making or receiving payment. Ripple on the other hand is relatively new in cross-border payment but is gaining popularity.

What is Ripple Net  xCurrent ?

xCurrent is Ripple’s enterprise software solution that enables banks to instantly settle cross-border payments with end-to-end tracking. Using xCurrent, banks message each other in real-time to confirm payment details prior to initiating the transaction and to confirm delivery once it settles.

How does Ripple xCurrent Work ?

Demo: Small and Medium Enterprise Payments Using RippleNet (2018)

Demo: Retail Remittances – A Case Study Between Japan and Thailand (2018)

Benefits and Limitation for Importers and Exporters using RippleNet xCurrent

  1. Faster Payment processing: It take around 4 sec to transfer payment where as in SWIFT usually the beneficiary would receive payment the next day.
  2. End to End tracking of transaction: Incase of swift, one has to follow up to get swift messages (MT103, MT202) based on which exporter can check with his bank on receipt of payment. In case of xCurrent, payment is made immediately and it allows end to end tracking.
  3. Attach Documents : In case of xCurrent, one can attach documents like invoice along with the payment message which is not allowed in SWIFT.
  4. Cost per transaction: Average correspondent bank charges using SWIFT is around $25 – $ 35 per transaction. RippleNet xCurrent is claiming to have low cost for the same.
  5. Lower failure rate: As all transactions are pre check (for account number with beneficiary bank details) before making payment, it results in lower failure rate.
  6. Limitation: With SWIFT, importer / exporter are able to make payment to any part of the world as most banks are connected with it. RippleNet xCurrent is still in process of adding banks and financial institutions around the world. So before making any payment importer / exporter will have to check whether beneficiary’s bank is on RippleNet or not. As of now in India only 5 banks have signed up for RippleNet which are Axis Bank, Yes Bank,  Kotak Mahindra Bank, IndusInd Bank and Federal Bank.

What is SWIFT gpi?

Facing competition, SWIFT launched new standards for handling cross-border payments in 2017 called SWIFT gpi.

Difference between Ripple and SWIFT GPI

Published with approval of Source:


  1. Cross Border Inter Bank Payments and Settlement: Nov 2018
  2. Cross-Border Settlement Systems: Blockchain Models Involving Central Bank Money
  3. Ripple: Transforming Global Payments: Presentation in IMF by Sagar Sarabhai on 13 Nov 2018
  4. Axis Bank and Yes Bank Joins Ripple: Dated 27 Apr 2017
  5. Axis Bank launches Ripple-powered instant payment service for retail and corporate customers: Dated 22 Nov 2017
  6. IndusInd Bank and Ripple tie up for Cross Border Remittances: Dated 22 Feb 2018
  7. Kotak Mahindra Bank to Accelerate Cross-Border Remittances with RippleNet: Dated 26 Jun 2018
  8. Federal Bank Partners with Ripple to Accelerate Cross-Border Remittances: Dated 28 Mar 2019
  9. New RBI unit to track blockchain and AI
  10. Application of Block Chain Technology to Financial Sector in India: Dated Jan 2017. Report by Institute for Development and Research in Banking Technology (Established by Reserve Bank of India)
  11. Demo: Small and Medium Enterprise Payments Using RippleNet (2018)
  12. Demo: Retail Remittances – A Case Study Between Japan and Thailand (2018)
  13. Ripple xCurrent : How it works
  14. The digital transformation of cross-border payments: SWIFT gpi
  15. IBM Blockchain World Wire: growing competition in payments
  16. Corda Settler

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