Integrating XRPL into Accounting Systems
Tags: xrpl, xrp, iso20022, defi
Published: 2022-06-13 09:24:35

[CryptoIso20022 Interop](https://github.com/radynamics/CryptoIso20022Interop) enables interoperability between [ISO 20022](https://www.iso20022.org) file formats and cryptocurrency payments. It aims to facilitate sending and processing received crypto payments within existing financial software's ISO 20022 capabilities.

As a ***payer*** you can import pain.001 xml files and transform payment instructions into cryptocurrency payments. For every transaction you like to send using cryptocurrency you must define a cryptocurrency address (receiver wallet) for a given iban or proprietary account number.

As a ***payee*** you can fetch received cryptocurrency payments from your wallet and transform received payments into camt.054 xml format.

Latest releases for various platforms are available for [download](https://github.com/radynamics/CryptoIso20022Interop/releases). An overview is shown in a short YouTube [video](https://www.youtube.com/watch?v=-u307nu72SQ).

## Daily business for SMEs handling payments...
... can get complicated. There are multiple hurdles users have to deal with. Some of the most obvious are:

- **Night, Weekend & Holiday processing** is not or only limited offered by banks. "express" processing comes often with additional fees.
- **International payments** often take several days or even weeks. Exchange rates are unknown until a bank finishes their own process. Customers internal business processes are interrupted and need to wait. User has to organize parallel interrupted payment workflows and keep status up to date.
- **Lack of banking integration** forces user to deal with various payment file import and exports. For status updates user has to login to his online bank periodically. Dealing with multiple bank accounts, platforms and maybe different formats make this even more painful.

Global migration to ISO 20022 as a global payment message standard simplifies payments for financial institutions. For users in accounting a lot of issues remain.

## XRPL Integration – take advantages
CryptoIso20022 Interop replaces the "banking side" of these business workflows with cryptocurrency networks (XRPL). That improves various aspects.

- **Night, Weekend & Holiday processing** isn't an issue anymore. Payments are sent in real-time - 24/7/365. More automation leads to less errors.
- **International payments** are equally simple and cheap as domestic payments are. Exchange rates are known in advance. Payment settlement just takes a few seconds. Customers business processes aren't interrupted anymore.
- **Integration is improved** due sending and receiving payments can be integrated into existing business processes. Dealing with multiple wallets (bank accounts) is simplified.

Better integration also improves user experience in payments such as for example:
- Check sender balance in advance
- Integrated fraud prevention
- Warn about duplicate (very similar) payments to same receiver
- Warn about nonexistent/invalid wallets

## Dealing with exchange rates
As a ***payer*** your pain.001 xml files can contain payments in various currencies. Amounts are converted into XRP using current exchange rates. The XRP equivalent amount of a payment instruction is sent over XRPL. If an accounting software can export XRP as regular foreign currency into pain.001 xml, no exchange rate is applied.

As a ***payee*** you can choose into which target (export) currency you would like to convert received payments. For every payment, the software looks up the exchange rate at the time the payment was received. Using that exchange rate, received amounts are converted into target currency for export into camt.054 xml file. If an accounting software can import XRP as regular foreign currency, XRP can also be used as target currency. The list of available currencies is defined by 'XRPL price oracle' in options section.