PolyFlow PayFi Use Case: Unlocking Seamless Cross-Border Payments and Revolutionizing the Rules of the Game for Banks and Merchants

Imagine a Brazilian bank with many local merchants that need to pay Chinese suppliers regularly. Currently, their payment channels need to go through traditional banking networks or high-cost crypto payment solutions, which leads to high transaction fees, delayed settlement cycles, and insufficient control over the flow of funds. These problems hinder the flow of value in the global supply chain.

PolyFlow's revolutionary cross-border payment solution is powered by the PolyFlow Liquidity Pool (PLP), which subverts the above complex status quo.BlockchainWith PolyFlow’s proprietary technology, self-custody protocol, and on-chain settlement system, PolyFlow eliminates the inefficiencies of traditional payment systems and significantly reduces the high costs associated with existing crypto payment networks. Here’s how we do it.

Pain points of traditional cross-border payments

For decades, global commerce has relied on traditional banking systems such as SWIFT for cross-border payments. However, these systems have the following major flaws:

1. Multiple intermediaries: Payments often need to go through multiple correspondent banks, each of which charges fees and can cause delays.

2. High costs: Banks charge high transaction fees, foreign exchange rate spreads, and compliance surcharges.

3. Slow settlement: Payments can take days or even weeks to clear, especially if intermediary banks are in different time zones or if compliance checks are involved.

4. Lack of transparency: It is difficult for companies to understand the status of funds during the settlement process in real time.

Even crypto solutions, hailed as the future of payments, have not been able to fully solve the problem. Many platforms rely on centralized third-party custodians such as Fireblocks or Blockdaemon to managewalletand liquidity, these custodians purchase expensive block addresses for each transaction, resulting in increased costs and weakeningBlockchainThe convenience and efficiency promised by technology.

PolyFlow Liquidity Pool (PLP) Solution

PolyFlowBlockchainWith intelligencecontractTechnology bypasses the pain points of traditional banks and third-party custodians, achieving unparalleled efficiency, transparency and cost savings. Here is how PLP works:

1. Self-Hosted and Smartcontract
   Unlike third-party custody solutions, PolyFlow ensures that funds remain in the hands of the client at all times during the transaction.contractThe system creates a self-executing programmable agreement between the sender and receiver of funds. Funds never leave the client’s control until the transaction is complete, minimizing counterparty risk and ensuring full transparency.

2. No third-party hosting required
   By eliminating reliance on intermediaries such as Fireblocks, PLP avoids the high processing fees associated with purchasing custodial addresses. Transactions are conducted directly through the PLP liquidity pool, enabling seamless value transfer.

3. Efficient settlement
   Once a transaction is initiated, our system accesses liquidity in real time to execute payments. When currency acceptance is required off-chain, it is processed through our full-license banking partners in key regions such as the United States, Europe, the United Kingdom, and Asia Pacific to ensure compliance and fast settlement.

4. Cost savings
   PLP greatly reduces the transaction fees of traditional banks or third-party custodians. Without intermediary commissions, companies can retain more funds while enjoying faster settlement speeds.

Real-world example: Brazilian merchant pays Chinese supplier

Back to our Brazilian bank example. Today, Brazilian merchants paying Chinese suppliers may face:

• High fees for 6%-8%: including foreign exchange spreads and intermediary bank fees.

• Delays of 3-5 business days or longer: due to time zone differences and compliance checks.

• Lack of control over capital flow: The funds are in the hands of intermediary banks and merchants have no control over them.

Using PolyFlow:

• Fees dropped to less than 2%: thanks to our directwalletarrivewalletTrading and liquidity models.

• Settlements are completed in near real time: typically within minutes, rather than the multi-day delays of traditional systems.

• Fully self-custodial: ensures that funds only leave the merchant wallet when preparing to settle with Chinese suppliers in fiat currency.

Why Self-Hosting Is Important

One of the highlights of PolyFlow is its self-custodial model, which is driven by smart contracts. In traditional systems, funds are usually kept in custodial accounts, which brings the following risks:

• Counterparty delays: If the intermediary encounters technical or compliance issues, funds may be blocked.

• Transparency gap: It is difficult for customers to understand the progress of transactions.

• SafetyRisk: Custodial wallets are a prime target for cyberattacks.

With PolyFlow, companies always have control over their funds. Our self-custody model eliminates counterparty risk and ensures funds are always in your hands before settlement.Safety, and provide full transparency throughout the transaction process.

Global solutions for legal compliance

PolyFlow is fast and low-cost, while also being fully compliant with regulatory requirements. Our network of partner banks is fully licensed in the US, Canada, UK, EU, Africa, China and Asia Pacific, providing businesses with the assurance that payments are processed within a robust regulatory framework. This ensures smooth cross-border transactions without the need to worry about regulatory issues that may arise from unlicensed systems.

The future of cross-border payments

PolyFlow represents the next evolution in cross-border payments. By eliminating intermediaries, leveraging blockchain technology for transparency, and returning control to customers through self-custody, we are creating a faster, cheaper, and more reliable payments infrastructure.

For banks, fintech companies, and enterprises looking to optimize global payment processes, PolyFlow is the partner you have been looking for. Say goodbye to the inefficiency of traditional banks and third-party intermediary networks, and embrace the innovative paradigm of high-speed global capital flow.

Ready to change the way you pay across borders? Contact us to learn more about PolyFlow.

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The article comes from the Internet:PolyFlow PayFiXiaobai NavigationExample: Unlocking seamless cross-border payments and revolutionizing the rules of the game for banks and merchants

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