Unburdened by regulation and legacy IT systems, new financial technology, or fintech, companies focused on providing payment services are claiming to provide faster and cheaper transfer of monies, both domestically and across borders. Even technology companies Google, Facebook and Apple are all entering this space and are expected to grow rapidly.
Cross-border payments are typically made via Swift and interbank transfers using decades-old technology, which is very expensive, slow, and provides inadequate tracking capabilities. It is unsurprising that cross-border payments in particular have been targeted by fintech companies utilizing distributed ledger technology (DLT) such as blockchain and virtual currencies to speed up the process. One new entrant even removed their fund transfer fees and other restrictive conditions such as monthly limits.