Why ‘Success’ Does not Always Mean Settlement in Cross-Border Payments
Sofia Khatsernova from xpate emphasizes the need to evaluate cross-border payment success by 'Time-to-Finality' rather than mere confirmation. This perspective aims to provide a clearer understanding of legal settlement and transaction certainty, addressing the shortcomings of traditional success measurements.
The argument highlights a critical gap in the current assessment of cross-border payment systems, where a transaction is deemed successful upon confirmation but may still face uncertainties in final settlement. Adopting this new metric could reshape the way payment providers and businesses gauge the reliability of cross-border transactions.
Key takeaways
- ▸Khatsernova argues for a shift from measuring payment success by confirmation to 'Time-to-Finality'.
- ▸The proposed metric aims to enhance the understanding of legal settlement in cross-border payments.
- ▸Current metrics may not accurately reflect the certainty of transactions even after they are confirmed.
Why this matters
This shift in measuring success can lead to improved transaction transparency and trust in cross-border payment systems. By focusing on 'Time-to-Finality', payment providers can better serve merchants and consumers by mitigating risks associated with unresolved transactions, potentially leading to increased adoption of cross-border payment solutions.
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