SAP, one of the world leaders in enterprise resource planning (ERP) solutions, has collaborated with Ripple and ATB Financial to break new ground when it comes to processing payments. Using Ripple’s blockchain, ATB sent $1000 from Canada to Germany in just 20 seconds. Kris Hansen, Senior Principal of Financial Services at SAP, said that though most consumers might miss the point, there are important ramifications for the future of global trading.
News of the payment was first mentioned last week. SAP allowed ATB to use its HANA Cloud Platform to send the money via its Payment Engine application. The implications of the achievement go beyond the speed of the transaction. This is because it wasn’t only finances that were moved, but also information. Hansen explained that many of those unimpressed with the achievement are not able to see the “full settlement lifecycle” of the transaction. “It’s not what you see in the glass, but it’s what’s behind that payment – all of the other activities that were also done in 20 seconds,” he said, adding that processes like reconciliation and settlement often normally take between three and seven working days to complete.
When it comes to transactions, corporations have far higher demands than the average consumer. Large chunks of data, such as associated invoice information and transaction type, have to be sent with the money to complete the process. In the ATB test transaction, a list of emails was included so that people could be notified when the process was finished. However, Hansen said that sending money via blockchain provides a much larger scope of information types that can be sent with the finances.
He explained: “In traditional payment networks, this would be a challenging thing to do. But this is what’s kind of the new world, that the additional information you include about that payment is almost unbounded. You can throw more information in there about the products the payment pertains to, more information on the invoices this is associated with and maybe a link to some information about the transaction. It’s all possible.”
Hansen further explained that he wants to conduct real blockchain operations that offer tangible results instead of using the diagrams he’s relied upon until now. As the implementation of more blockchain technology occurs, the way in which transactions could be sent in the future could soon be revolutionised.
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