Shruthi Murthy, head of engineering at Contemporary Treasury, noted that it is challenging to develop a stable, contemporary, and scalable system despite the fact that payment systems have existed for millennia.
These systems, regardless of location or payment method, have concentrated on the three “Fs” (digital or offline). Transactions must be rapid, free of fraud, and charged at reasonable rates.
And there is little doubt that current payment methods can be made better, especially in terms of fraud and reaction speed. Since checks are just pieces of paper, anyone can print fake ones. Payments made using credit cards and bank transfers take days to settle. Although wire transfers are quicker, their expenses are higher.
Systemic errors are challenging to spot and manage, and fighting fraud has a financial penalty that is designed to shield both customers and merchants from dishonest individuals.
Nowhere is the complexity more apparent than in business-to-business payments, according to Murthy, where the sheer amount of commercial transactions worldwide is astounding and transaction values often surpass millions of dollars. Furthermore, there aren’t many common interfaces, which makes it difficult for suppliers, partners, and other B2B parties to move money up and down supply chains.
She asserts that a wide range of B2B and payment use cases, from making online food purchases to submitting loan applications, now need the use of programmed money movement.
