Tempo Integrates Blockchain Use For Sending Remittance Payments
Tempo’s Use of Blockchain to Remit Payments
There’s no denying that blockchain platforms are all the rage right now in the financial technology industry. Each day, the financial landscape is changing with people shifting from traditional payment methods to cheaper and more transparent payment options built on blockchain technology. One such platform is Tempo which has seamlessly integrated blockchain into its payment system.
Originally, Tempo was designed to carry out international payments and remittances but has switched to small value payments. The move towards embracing this forgotten clientele is the fact that banks charge high fees and take a lengthy period in order to remit money.
What Has Tempo Director Anthony Barker Got To Say?
In a recent interview, Barker an executive at Tempo stated that 55% of the total global remittances are done by banks while other platforms such as Western Union get to process 33% of the payments. The problem lies in the fact that banks don’t have money sitting around waiting to make international payments. Thus, the banks result to the SWIFT system which is expensive and cumbersome to users.
Barker stated that they had moved to using blockchain technology because banks were not efficient in handling international cash transfers of less than $10,000. You will find that money is locked up and the correspondent banks most times can’t trace where the money is pending.
Tempo’s Crypto Of Choice
For this platform, Stellar was their preferred currency. Since Tempo is licensed by the French government, it was necessary to look for a platform that was licensed in a similar way. Tempo also found that Stellar was a natural fit because of its open source status. Unlike Ripple where the platform belonged to a number of individuals, Tempo usually entices software developers through an open platform.
Anthony strongly believes that platforms with an open source system will win in the long run. Tempo was also attracted to Stellar due to its flexibility. According to Barker, Tempo worked with Stellar developers to integrate their system as a second layer protocol. The team at Stellar quickly integrated these changes since they are committed to making payments as quick and easy as possible.
Some time back, Tempo also created a stablecoin on Tether known as EUROT which got rid of the risks brought about by volatility. Anthony admits that blockchain is a bit difficult right now but in the future it will be much easy where people will be making payments seamlessly without even realizing that they are using cryptocurrencies.