BBVA Unveils New Blockchain-Based Transfer System to Simplify Overseas Payments and Reduce Transaction Fees
- Blockchain , Money Transfers
- 24.04.2017 02:30 pm
Banco Bilbao Baningo Vazcaya Argentaria SA (BBVA), second largest multinational Spanish Banking group, has announced execution of its first cross-border payments, based on the blockchain-supported fund transfer system.
By virtue of the new technological advancement, designed by Ripple, San Francisco firm, BBVA managed to transfer about 50-euto dominated payments from Spain to Mexico within a few seconds. Usually, conventional transactions consume approximately four working days to perform these types of transactions.
BBVA, one of the industry leaders, plans to deploy distributed ledger and expand it further to supply its corporate customers with efficient and affordable international payment method. In average, payments transferred via Ripple technology cost 81% less compared to other corresponding banking networks.
Additional benefit of the newly applied solution is an ability to control payments that allows having a clear scope of the transfer costs. Moreover, the blockchain transfer system, timely provides all relevant information about transactions and can be validated by a customer.
Alicia Pertusa, head of BBVA lender’s digital transformation in investment banking unit commented: "It’s not just the real-time transfer that’s important here but the information we can send with the payment." " That’s very relevant for our clients because they could begin streamlining their reconciliation systems."
The advanced blockchain solution may lay a foundation to evolvement of the BBVA's international payments cloud in the future.