Payrolls, wire transfers and bank payments have created an unnecessarily complex ecosystem for both businesses and employees. The settlement of transactions through traditional financial systems can be extremely expensive, costing upwards to $100 per transaction in the case of wire transfers.
According to a study conducted by comparison website NerdWallet, the average fee for outgoing international wire transfers is $44, which can be overwhelming for companies that have thousands of payrolls to issue on a monthly basis. For instance, if a company has a thousand employees working overseas, an average fee of $44 per transaction would cost the firm around $44.000 every month.
“Among national banks and other institutions we surveyed, the average fees are $9 for incoming domestic wire transfers, $25 for outgoing domestic wire transfers, $10 for incoming international wire transfers, and $44 for outgoing international wire transfers,”
Furthermore, wire transfers can take additional time to be fully processed, depending on the location of the recipient and the bank processing the outgoing transaction. By simply reducing the transaction settlement time to a few weeks to one to three days, companies like TransferWise have been able to evolve into multi-billion dollar companies.
With a blockchain-based autonomous, secure and transparent financial network, Etch is solving a much more important problem in comparison to existing fintech companies and service providers. Through Etch and its automated payroll system, employees can be paid and incentivized in real-time. Companies will no longer have to cover large transaction fees and deal with the inefficient services of major financial institutions. No further manual verification and approval will be required on the side of companies and employees will be able to benefit from timely, low-fee and efficient payrolls.