The debate over using cryptocurrency such as Bitcoin for payments might rage on but behind the scenes blockchain is gaining ground rapidly, changing the landscape for how transactions are being made.
RocketFuel Blockchain Inc's (OTCQB:RKFL) new business-to-business (B2B) Cross Border Payments product using blockchain is an excellent example of new payment innovations. Launched in March this year, the San Francisco-based global payments solution company has successfully completed testing for its new product.
Moving large sums of money between countries has always presented its fair share of challenges. However, RocketFuel leverages blockchain and Stablecoins to eliminate volatility, offering B2B Cross Border Payments at lower costs and exchange rates than most banks.
“If a company needs to move a large amount of money from Country A to Country B, we typically convert that to Stablecoins to make sure there is no volatility. Then we move it to the country they want, in the currency they desire,” RocketFuel co-founder and CEO Peter Jensen told Proactive.
“It’s getting increasingly difficult, time consuming and expensive to send money across borders through the traditional route. Cross-border payments using blockchain technology offer several advantages including faster settlement times, access to newer markets, lower costs, security, and greater transparency compared to traditional payment methods.”
As a Silicon Valley tech visionary, Jensen is a natural problem solver with a knack for identifying opportunities in challenges. He has a track record of success as a CEO in building startups in Silicon Valley and selling them. This includes Thinstall which was acquired by VMware, StopTheHacker which was acquired by Cloudflare, ParStream which was bought by CISCO, and SPanugo which was acquired by IBM.
Boosts security, speed and lowers cost
Jensen is now focused on ensuring that RocketFuel leverages Bitcoin’s technology endoskeleton, blockchain, to “optimize processes” to speed up cross-border payments.
“Many banks use the SWIFT system in banking and if you talk to most companies, they will tell you that even when a parent company is sending money to its subsidiary in a different company there are inordinate delays sometimes. When there are questions on the compliance side it takes a long time to resolve,” said Jensen.
SWIFT – or the Society for Worldwide International Financial Telecommunications – is a system that banks use to securely send messages to each other.
Traditional international bank transfers between a sender and receiver are connected by a many-layered banking network, including but not limited to commercial banks, clearing houses, credit unions and other financial services institutions, thereby complicating and slowing down the process.
High compliance standards
Reliance on modern blockchain technologies helps companies like RocketFuel avoid delays and be on top of compliance-related issues.
“Blockchain improves the security, speed and cost of each payment,” said Jensen, while adding that RocketFuel is “committed to maintaining compliance standards” without compromising efficiency.
RocketFuel highlights its anti-money laundering processes such as Know Your Customer (KYC) and Know Your Transaction (KYT), which are used by US banks. Jensen said RocketFuel rejects non-compliant customers, streamlining the payment process and reducing delays.
“We are not compromising on compliance. This is not about hiding money. We have the same processes in place as the banks in terms of anti-money laundering and we are rejecting some customers that don’t comply,” said Jensen.
“But because we are just using different technology things are just going much more efficiently.”
Leverages fiat to crypto on-ramps
Jensen said RocketFuel is seeing “strong interest” in its B2B Cross Border Payments product as it helps companies sending money avoid cross-border “transaction frustrations.”
RocketFuel leverages fiat to crypto on-ramps and settles instantly to eliminate any risk of volatility throughout the transaction to make sure the transaction goes safely and smoothly.
In a nutshell, a fiat to crypto on-ramp refers to the process of exchanging fiat currency for cryptocurrency, while an off-ramp refers to the process of exchanging cryptocurrency back into traditional currency.
RocketFuel supports over 190 countries with payouts and settlements to local banks through fiat currencies or to a variety of digital wallets with cryptocurrencies. It utilizes its Virtual Asset Provider License combined with the local Money Service Business license of its partners to compliantly provide payment services in different regions of the world.
The nature of blockchain — a distributed ledger that records information in a tamper-proof, trustworthy way — has the potential to make all sorts of services and transactions more affordable and include individuals who have been at the margins into the global economy.
“Blockchain brings more accuracy and reliability to the process which significantly reduces the risk of fraud,” said Jensen.
Separately, RocketFuel provides online shoppers with an easy-to-use, one-click checkout process that accepts payments with bank transfers, Bitcoin and over 160 cryptocurrencies. The company also has RocketFuel Payouts, a product which allows businesses to pay people in crypto or fiat currencies as it drives the rapidly evolving world of international commerce.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
Follow her on Twitter: @UttaraProactive
