Using XPRL makes pre-validation of payment redundant due to blockchain technology

• SWIFT has recently demonstrated how the system for pre-validation of payments helps to reduce friction in online payments.
• Some users pointed out that Ripple has implemented it way back and more efficiently via its XRPL ledger.

San Francisco-based blockchain startup Ripple has emerged as one of the best platforms for cross-border instant settlements. Although mired in various controversies and a legal battle with the SEC, Ripple has continued to accelerate its growth in building blockchain-based solutions.

Some of the most popular Ripple solutions include RippleNet and the XRP-based instant settlement via the XRP Ledger. When it comes to cross-border, Ripple has beaten direct competition to the world’s most widely used SWIFT payment system.

Recently, the official handle of SWIFT shared how it has successfully implemented pre-validation of payments and how it has helped “the financial community realize a frictionless future by pre-checking cross-border payments for errors”.

Want to say goodbye to unnecessary #payment error?

In this article, Mireia Guisado Parra shares how payment pre-validation is helping the financial community realize a frictionless future by checking cross-border payments for errors in advance.

Read more: pic.twitter.com/EUbYy079kU

— Swift (@swiftcommunity) 9 January 2023

In its research, SWIFT found that 72 percent of payment exceptions on the SWIFT platform occur as a result of account problems, formatting errors and invalid data. To address this, they introduced payment pre-validation which offers an extra layer of security when it comes to cross-border settlements.

The solution for pre-validation of payment involves tasks such as “checking whether the recipient account is open and ready to receive funds, and that the entered name matches the name on the account”. With this feature, SWIFT seeks to create a frictionless experience for its customers that will effectively help international supply chains.

While SWIFT has demonstrated its prowess with pre-validation of payments, players like Ripple have already implemented it long ago.

Ripple challenges SWIFT

The Ripple blockchain network has challenged the traditional and widely accepted SWIFT payment system at all borders. Back around May 2020, Ripple became part of the ISO 20022 Standards Body. Ripple became the first company focused on DLT to join this global standard for payments. This allows Ripple to create a common model for payment data globally.

Ripple’s blockchain-based settlement solution rippleNet has been in the market for over four years now and has been adopted by some of the leading financial institutions worldwide. While SWIFT has flashed its payment pre-validation systems now, Ripple implemented them way back using the power of blockchain.

A Twitter user responds to SWIFT’s latest flex over pre-validation of payments wrote:

Ripplenet has been doing pre-validation since 2018. It’s not the juice. The juice is that it can settle payments (via ODL) in less than 1 minute.

Using XRP tokens, Ripple’s XRP ledger provides on-demand liquidity (ODL) that facilitates instant cross-border settlements worldwide. Along with this, Ripple is also gearing up to provide the platform for Central Bank Digital Currencies (CBDCs) to cater to the trillion dollar market. Ripple is confident that the XRP Ledger is capable of handling transactions for stablecoins and CBDCs at a very large scale.

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