The cross-border payment market is vast, involving trillions of dollars in global fund flows each year. However, traditional cross-border payment systems still operate on technology levels from the last century, being inefficient and costly. For example, international transfers via the SWIFT system typically take 3-5 days to arrive and incur fees as high as 3% of the transaction amount.

This situation is being disrupted by blockchain technology. The Polygon network is leveraging its innovative blockchain solutions to bring revolutionary changes to cross-border payments. Using Polygon for cross-border transfers can result in fees as low as under $0.01, and it can achieve near-instantaneous transfers, greatly improving efficiency and reducing costs.

The core issue facing traditional financial systems is not just the slow speed, but more importantly, their architecture has become outdated. Currently, financial systems in various countries are isolated from each other, requiring manual reconciliation through intermediary institutions. This means that even simple cross-border payments must go through multiple stages, including correspondent banks, clearinghouses, and central banks, resulting in lengthy processing times and low efficiency.

Polygon effectively addresses this pain point through its innovative technology combination of zkEVM, Avail, and AggLayer:

1. zkEVM technology can compress thousands of transactions into a single cryptographic proof.
2. Avail ensures the data's queryability and verifiability.
3. AggLayer enables the sharing of the same settlement layer across different blockchains.

This combination of technologies is equivalent to building a shared, real-time synchronized, and tamper-proof digital ledger for the global banking system, greatly enhancing the efficiency and security of cross-border payments.

The advantages of using the Polygon network for cross-border payments have been validated in practical applications. For example, in settlements with Southeast Asian suppliers, fiat currency is exchanged for USDC stablecoins through compliant channels, and then directly transferred on the Polygon network. The suppliers can then exchange it back to fiat currency locally. This process reduces a bank transfer that originally took 2 days and cost $28 in fees to complete within 8 seconds, with a fee of only $0.02.

Blockchain technology is reshaping the global financial landscape, with innovative solutions like Polygon bringing unprecedented efficiency and convenience to cross-border payments. As these technologies continue to develop and be applied, we have reason to expect that future international financial transactions will become faster, more economical, and safer.