Ripple vs SWIFT: Need for global payments infrastructure upgrade & efficient IOV
Ripple’s global head of strategic accounts, Marcus Treacher, recently took to Twitter to share a report revealing extreme delays on SWIFT (Society of Worldwide InterBank Financial Telecommunications). The purpose was to point out why the Ripple mission is necessary.
A recent report by The Guardian showcased the extended payment delays and errors on the traditional payments network SWIFT. Taking the opportunity, Marcus Treacher wrote, “Timely reminder of why our Ripple mission is so important. Building the #IoV for super-fast, transparent and reliable payments worldwide”
The Guardian tracked four stories revealing how thousands of dollars got stuck in cross-border payment executed via SWIFT. According to the report, one of cases were of that of Elaine and Malcolm Thompson’s charity, St Paul’s Children’s Project who pays expenses for around 36 orphans in Zambia. So, a payment of £11,000 was made in October through SWIFT. The payment, however, never arrived.
In another case, a man who has been named as Martin Finnegan in the report was told that it would take three days time to move money (£2,450 ) from his Nationwide account to his mother-in-law in Russia. However, after months it was still in transit and location was not known.
Two other similar incidents were noted. In one case, the person almost lost the house she was planning to buy as his money went missing from her Nationwide account. The Nationwide accused poor communications for the mishap. “The industry uses Swift messaging as time differences and language barriers can sometimes make it difficult to contact banks in other countries by phone,” Nationwide explains.
The last incident reported by Guardian mentioned that a person waited for five months for a holiday deposit of £500 to reach her Ghanaian tour operator. Eventually, it was “refunded after the Observer contacted her bank, TSB.” Marcus Treacher pointed out the need for a global payments infrastructure upgrade and the need to create an efficient internet of value (IOV).
Interestingly, last month, there were rumours stating there might be a Ripple-SWIFT partnership. However, the rumours were soon debunked by the CEO Brad Garlinghouse. In fact, Garlinghouse at that time told in an interview with Bloomberg that “SWIFT said not that long ago they didn’t see blockchain as a solution to correspondent banking. We’ve got well over 100 of their customers saying they disagree.” He added, “What we’re doing and executing on a day-by-day basis is, in fact, taking over SWIFT.”
Image via Shutterstock