Part 7/10:
Challenges in Cross-Border Payment Systems
Cross-border payments remain a challenging aspect of traditional finance, characterized by extensive processes that involve multiple intermediary banks. The inefficiencies and costs associated with these transactions can be detrimental, often resulting in charges that exceed 5%.
Streamlined Solutions
Fintech companies like Wise (formerly TransferWise) have sought to alleviate some of these issues by employing opaque accounts for currency exchange, allowing users to convert funds at favorable exchange rates without the drawn-out multi-step process involving numerous banks.