Gartner Research

Why Bank CIOs Should Care About New Blockchain-Based Cross-Border Payment Alternatives

Published: 16 May 2019

ID: G00385235

Analyst(s): Fabio Chesini, Harshil Kathpalia

Summary

Blockchain-based solutions, though nascent, are challenging monopolies within the cross-border payment industry. CIOs should explore this opportunity to expand the addressable market within the underbanked and SMB segment, which offers low-hanging fruit for these initiatives.

Table Of Contents

Analysis

  • Four Types of Blockchain-Based Cross-Border Payment Alternatives
  • Focus of Incumbent vs. Nonincumbent Blockchain Initiatives
  • Three Possible Scenarios for the Future
  • General Constraints to Alternative Cross-Border Payment Initiatives
    • Group 1 Connecting Two to Eight Countries
    • Group 2 Connecting Nine to 69 Countries
    • Group 3 Connecting 70 to 180 Countries
  • Advantages Compared With Current Payment Networks
  • Two Areas Where Banks Can Play
  • CIO Exploration Efforts Should Focus on Digital Asset Markets

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