《图解技术体系》Three Models of Cross-Border Payments

1. Correspondent Banking Model: In this traditional model, banks in different countries establish relationships with each other to facilitate cross-border payments. One bank, known as the correspondent bank, holds an account on behalf of the other bank, known as the respondent bank, to help process international transactions. This model can be complex and costly due to the need for multiple intermediary banks and high fees.

2. SWIFT (Society for Worldwide Interbank Financial Telecommunication) Model: SWIFT is a messaging network used by banks worldwide to securely exchange information for cross-border payments. Through SWIFT, financial institutions can communicate and transfer funds across borders efficiently. While SWIFT streamlines the process, it may still involve multiple intermediaries and incur fees.

3. Blockchain-based Model: Emerging technologies like blockchain offer innovative solutions for cross-border payments. Blockchain enables peer-to-peer transactions without the need for intermediaries, reducing costs and processing times. Cryptocurrencies, such as Bitcoin and Ripple, are commonly used in cross-border payments leveraging blockchain technology. This decentralized model provides transparency, security, and efficiency in international transactions.