The software developer SAP has started to carry out international blockchain payments supported by the Canadian and German banks ATB Financial and ReiseBank and Ripple fintech startup. The banks use their own closed blockchain
This is the first blockchain payment channel between Canada and Germany. Transfers are made using the SAP HANA Cloud Platform, SAP Payment Engine service and Ripple corporate solution- and this means that the payment is auhtorized through closed blockchain. The first transaction sent to German ReiseBank amounted to 1,000 CAD (€667).
The transfer was completed in only 20 seconds while in the traditional way, such an operation normally takes two to six working days.
“Although we are very much still in the early stages of blockchain adoption, it was highly encouraging to see in a true demonstration the potential it has in transforming cross-border payments, making them almost instantaneous and reducing potential errors,” said Curtis Stange, chief strategy and operations officer of ATB Financial.
According to him, the company can experiment with new technologies, such as blockchain, using the SAP HANA Cloud Platform. The companies believe that the test transfer demonstrated how the efficiency of cross-border payments can be improved and the presence of financial companies worldwide can be expanded.
“Banks like ATB that take a positive and proactive approach to blockchain now can position themselves advantageously for when the technology enters the mainstream,” said Bernd Leukert, a member of the Executive Board of SAP SE, Products and Innovation.
Earlier, SAP IT-developer John Bertrand noted in his article on Finextra that the most important area of possible blockchain technology application is international payments, which are now highly inefficient and costly.
“The process is similar to a postmen delivering mail to the bank’s address. Like a postman who occasionally makes mistakes with yours and your neighbour’s letters, blockchain is the equivalent of a recorded door-to-door delivery service.”
SAP is a German software developer founded in 1970 by a group of IT-specialists from IBM. According to a research by Gartner consulting company, in 2015, SAP products for transfer chains management accounted for nearly a quarter of the world market.
Elena Platonova
