#cross-border-payments

#cross-border-payments

SWIFT - aka the Society for Worldwide Interbank Financial Telecommunication - provides a messaging service that financial institutions use to move money around the world. The service is widely used but is slow because, as explained by ANZ Bank, SWIFT "doesn't actually move the money." "This means the instruction to pay and the movement of funds happen separately, often requiring a complex network of accounts and correspondent banks to enable a payment to be processed.

Traditional banks rely on legacy systems that were never designed for the speed and scale of global business today. This is why Electronic Money Institutions (EMIs) are currently changing the market. An EMI is a licensed financial entity that can issue electronic money, provide IBAN accounts, process payments, and hold client funds in safeguarded accounts. Unlike banks, EMIs cannot offer traditional loans or credit, but they can do almost everything else when it comes to facilitating digital payments.

Rollups represent a form of L2 scaling that offloads calculations from Ethereum, compressing and storing results to reduce gas fees while ensuring transaction correctness.