SAP Collaborates with Circle USDC for Cross-Border Payment Testing

German software giant SAP is making significant strides in addressing the challenges faced by businesses when it comes to cross-border payments. In an unexpected move, the company is reportedly utilizing Circle’s USDC stablecoin to test and improve the efficiency of international money transfers.

SAP’s testing activities are taking place on an Ethereum Test Network, as stated in a recent blog post. The company is focusing on key areas such as cost reduction, transaction speed enhancement, and the need for greater transparency in cross-border transactions. By targeting these core challenges, SAP aims to revolutionize the current process.

Cross-border payments have become an increasingly critical aspect of the global business landscape. As the world continues to expand, executing seamless international transactions becomes an imperative. However, the existing system has left much to be desired, prompting SAP to step in and seek transformation.

According to reports, SAP has chosen Circle’s USDC stablecoin as its preferred digital asset for testing cross-border payments. The company outlined its aspirations and directives for the project in a recent blog post.

Sissi Ruthe, a representative of SAP, emphasized the hurdles faced by small and mid-sized enterprises with integration business partners when it comes to cross-border payments. She stated, “These major challenges can be solved with Digital Money as a means of settlement and Blockchain as the underlying technology.”

The blog post specifically highlighted the areas that SAP’s testing aims to address. It pointed out the exorbitant costs, with transactions often amounting to up to $50 per transfer. Additionally, the post highlighted the slow speed, which can take up to seven days for money to be transmitted. Lastly, the lack of transaction transparency was mentioned, underscoring the need to provide real-time visibility into the status of payments.

As part of its efforts, SAP announced a preview of the SAP Digital Currency Hub, showcasing the ease and convenience of cross-border payments using Digital Money. The company encourages those interested in this payment method to register and participate in testing the technology.

By leveraging Circle’s USDC stablecoin and the Ethereum network, SAP benefits from the expertise of a leading stablecoin and the robustness of Ethereum’s blockchain infrastructure. The technology behind this new offering is expected to be top-notch. Observing how the project evolves beyond the testing phase will be intriguing, as it could have significant implications for the future of cross-border payments.

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