Letters of Credit Work, But Payco Needs to Sort Things Out
Finance
8 minute read
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We’ve introduced a new LC issuing system that relies on modern technology. Our system is far more efficient than bank systems, and it’s a game-changer in terms of cost, speed and simplicity.
Note that the system that underpins an individual LC is relatively complex when you look at the number of stages and parties involved. Vital information has to move between an importer, an advising bank, an issuing bank and the exporter, with there being a large number of stages of movement. Other parties are also often involved, and accuracy and security are crucial at each stage.
The problem with banks is that they usually handle the whole process manually. This method is slow, expensive and prone to human error, amongst other things. We use blockchain technology, artificial intelligence and cryptocurrency to create a whole new LC system.
With blockchain technology, we handle documents much more efficiently. Blockchain technology is more secure as well.
With artificial intelligence, we speed up and simplify document review processes to a huge extent and avoid the possibility of human error.
With cryptocurrency stablecoins, we can execute transactions instantly and more cheaply. Importers and exporters that use our LCs also benefit from other advantages like avoiding currency risk and the need to exchange currencies.
The two biggest benefits we bring are speed and price savings. We can issue a letter of credit to an importer in a few minutes. That’s instead of taking several days like a bank (banks can take 4 days just to issue an LC to an importer – that’s without the other steps in the whole process). We can also issue LCs for a fraction of the cost (around 1/3 the cost of a bank, to be precise).
Importantly, as we’ve written this article to explain, our efficient, cheaper system means that we can now issue letters of credit for small amounts (up to $100k).
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Payco is a digital solution for cross-border payments, providing secure and convenient services for individuals and businesses. With Payco, you can easily send money internationally, issue letters of credit, and conduct transactions using our secure digital wallet.
Catch us on
Make your transactions safely with Payco!
Home
About Us
Products
Contact Us
How it works
FAQs
Blog
Payco is a digital solution for cross-border payments, providing secure and convenient services for individuals and businesses. With Payco, you can easily send money internationally, issue letters of credit, and conduct transactions using our secure digital wallet.
Catch us on
Make your transactions safely with Payco!
Home
About Us
Products
Contact Us
How it works
FAQs
Blog
Payco is a digital solution for cross-border payments, providing secure and convenient services for individuals and businesses. With Payco, you can easily send money internationally, issue letters of credit, and conduct transactions using our secure digital wallet.
Catch us on