Yet, payments are still routed through legacy transaction platforms like Visa and SWIFT. These tend to be slow, with transfers sometimes taking a week or more. They are also expensive, with poor exchange rates, fees and fixed charges. As a result, the issue has become a hot topic, especially since the G20 made cross-border payments a priority last year.
Even with solutions being developed, they are taking their time. However, innovative fintech businesses are reacting faster and are already disrupting the industry. One such company is XanPool and its platform XanPay.
Using cryptocurrency avoids the cumbersome legacy infrastructure
XanPool leverages the advantages afforded by cryptocurrencies to bypass traditional platforms entirely. Its CEO and co-founder is Jeffery Liu, a cryptocurrency entrepreneur and expert adept at spotting gaps in the fintech market. “We established XanPool to make buying cryptocurrency with fiat currency a lot easier,” Liu explains.
“Cryptocurrency on and off-boarding typically involves counterparties, like P2P marketplaces and exchanges. Users give custody of their money to these counterparties and can only buy and sell on that platform. This is risky and comes with a lot of fees.
“What makes things worse is that for users to get their money onto the platform, they must deal with the traditional financial infrastructure, like credit cards or SWIFT, which adds yet more expense and slows down the process even further. Cryptocurrencies were invented to avoid legacy infrastructure, so it seemed crazy that buying some meant routing funds this way,” Liu says.
“So, we set up XanPool. We merged fintech solutions like payment platforms and e-wallets with cryptocurrency and all the advantages that go with it. We created automated market-making software which allows buyers and sellers – liquidity providers – to easily make crypto transactions using e-wallets or bank accounts.