It is not always easy getting people to accept a certain standard. This is because many people want to always be in control. This is also not different when it comes to payment networks. Payments interoperability has not been possible until recently where interledger protocol enables payments between independent payment systems. Over the years, every payment network has wanted to be in control such as blockchains and traditional networks like Visa. However, that has not been successful.
Various payment networks have tried to convince other networks to connect with their systems to enable interoperability, but that has not worked. This is mainly because every provider wants to be king by owning the network. This is why we have a fragmented payment landscape today. The good news is that interledger protocol tries to eliminate the barrier and enable payment across different ledgers.
Interledger is a web protocol that makes it possible to move payments across different payment systems. With interledger, you connect with all types of ledgers such as the blockchains, national payment systems, and digital wallets among others. Because of this, you can transact with anyone without difficulty irrespective of currency or location. Interledger will simply allow you to receive payment from any ledger. It does not have a centralized system or intermediaries and is not tied to a single currency, blockchain or company.
Normally, sending money or payment of the same payment network is not an issue. It is often simple, quick, and inexpensive. The main issue is when you want to move a payment across different payment networks. When that is the case, it becomes cumbersome, expensive, and even slow because the payment will pass through intermediaries and multiple systems. However, interledger works to fix such barriers and enable payment across independent networks.
Interledger has been designed such that payments are delivered with speed and certainty no matter the size or the type of payment. It is also intended to provide a profitable mechanism for banks and other financial institutions while making it cost-effective for customers. At the same time, interledger provide scalability by ensuring there is no limit when it comes to processing transactions. Therefore, you can meet your customers' demand.
Another good thing about interledger is that there is total transaction privacy. This is something that often lacks with other payment networks. Only the transacting parties can retain the transaction data. Interoperability or communication between independent payment networks has been made possible as well. Also, interledger utilizes existing currencies, ledgers, and systems of record. Knoe more about USD on interledger.
Check out also this related article: https://www.huffpost.com/entry/your-ultimate-payment-gat_b_9329154
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