Knox Wire is a fintech service offering quick and affordable RTGS and wire transfer solutions. The company is new on the market, but it is already competing with top brands like RippleNet and Swift. One thing’s for sure, its services can forever change the cross-border payment system as we know it.
This article looks closely at Knox Wire and discovers its innovative system. Below are answers to the most frequently asked questions about this new service.
What is Knox Wire?
Knox Wire is an RTGS or real-time gross settlement system, and wire transfer system services are available globally. Its solutions support almost instant international bank transfers and link around 30,000 financial institutions worldwide.
The Knox Wire CEO, Stephen McCullah, believes that the company has the potential to rival already established brands like RippleNet. Several banks and brokerage firms have already onboarded its services since the platform officially launched.
What Makes Knox Wire so Special?
Knox Wire connects financial providers from 200 countries. Also, it enables them to make transfers in roughly 150 different currencies. Most importantly, it uses a ground-breaking settlement system that instantly solves operations.
Knox Wire allows financial institutions to implement its services. For instance, the application process time does not exceed two weeks. On the other hand, its competitors require at least 6 months of analyzing applications. Also, Knox Wire does not charge any upfront costs for qualifying organizations. Conversely, competitors like Swift charge $30,000 upfront, followed by monthly fees of a minimum of $6,000.
What Technologies Does Knox Wire use?
The cross-border transfers and settlements arena has seen slow development in recent years. Many of its leading companies in this field have chosen to anchor their solutions into centralized ledgers. This makes their operations sluggish and time-consuming. Furthermore, most of their services are too expensive for most financial institutions.
Knox Wire embraces new technological advances, such as decentralized ledgers, which drastically improve its performance. This way, the platform can support fast and cost-effective solutions, which enable more financial organizations to enter the market.
Furthermore, a decentralized ledger comes with a highly secure encrypted infrastructure. This means that all the data traveling through the Knox Wire ecosystem is safe at all times. Lastly, Knox Wire uses a bi-directional messaging system to allow participating institutions to communicate faster.
How Fast Are Transfers in the Knox Wire System?
Knox Wire enables participants to engage in real-time payments that finalize in less than 2 seconds. On the other hand, transfers outside the Knox Wire Network take up to one business day to complete.
Does Knox Wire Have Income Potential?
Knox Wire has a significant income potential for participating institutions. For example, research has shown that 9 out of 10 users prefer paying a premium service for instant wire transfers. This means that users will pay in 90% of all transfers rather than wait for a lengthier settlement. In return, they will pay a flat fee of the total transaction value. So, institutions can earn up to 0.5% of each transaction.
How Can an Institution Withdraw its Knox Wire Balance?
Knox Wire participants are free to withdraw their balances at any time. Generally, most countries allow for same-day settlements in cash or domestic wire.