Indian IT Giant TCS Using Ripple’s Blockchain Network For Remittance Servicesbr>
Indian IT firm Tata Consultancy Services (TCS) has announced the release of its Quartz Cross Border Remittances solution.
TCS provides information technology (IT) and IT enabled services worldwide. It has been deploying its Quartz Blockchain Solutions for enterprises in the financial services value chain, leveraging the technology for its agility and ability to significantly reduce transaction costs. Their clients include Citibank UK, General Electric, and Microsoft, among others.
In a recent report, TCS said that the Quartz Cross Border Remittances solution enables banks/payments systems to connect to newer blockchain-based payment infrastructures like RippleNet, Ripple’s blockchain-based payment network, for processing of cross border FX remittance transactions.
“The existing payments landscape involves multiple agents, high transaction costs, and delays in completing a remittance transaction,” TCS said. “There is a lack of transparency with respect to the costs and deductions made for completing a transaction as well as huge challenges with reconciliation, stemming from a lack of real-time information on status of the payment transaction as it traverses systems spanning various intermediaries. These challenges translate into a poor experience – for banks involved in the transaction, as well as end customers and businesses, which are impacted as a result of longer payment processing cycles.”
The new solution will reportedly connect the TCS BaNCS Payments system to to Ripple’s blockchain network using APIs, and support services related to FX Quote nalization and debit/credit of beneciary accounts. According to TCS, this approach includes a range of benefits, such as near real-time settlements of remittances, significantly lower charges and elimination of overheads.
“Leveraging this approach, existing/core systems operational at banks/ other payment institutions need not undergo changes in connecting to the blockchain platform, as this complexity is absorbed by the Quartz Gateway,” TCS said. “DLT based payment infrastructure / ecosystems can reduce liquidity needs for banks/ financial Institutions, in managing Cross Border remittances – a huge benefit for the treasury department.”
Last month, TCS announced that it will develop scalable cross-industry blockchain platform solutions using Microsoft’s Azure blockchain cloud and R3’s Corda Enterprise blockchain platform to drive scaled adoption of blockchain across industries.