London-based fintech unicorn PoundPay is preparing to launch a blockchain-based cross-border payment platform that promises to slash transaction times from days to seconds. The company, valued at £1.8 billion after its latest funding round, claims its technology could undercut traditional banking fees by up to 80%.

PoundPay’s CEO, Alistair Drummond, told The British Wire that the platform, dubbed ‘PulseNet’, uses a private blockchain to settle payments in real time. “We’ve built a system that bypasses the SWIFT network entirely,” he said. “Banks take two to five days to move money across borders. PulseNet does it in under three seconds.”

The move comes as regulators worldwide scrutinise the dominance of legacy payment systems. The Bank of England has signalled support for innovations that reduce reliance on SWIFT, which handled over 150 million messages in 2023.

But PoundPay’s ambitions face hurdles. Industry insiders question whether the platform can maintain security and compliance at scale. “Blockchain is not a magic bullet,” said Dr. Elena Rossi, a fintech analyst at Imperial College London. “Cross-border payments involve multiple jurisdictions with conflicting regulations. PoundPay will need to navigate anti-money laundering laws in every country it operates.”

Drummond insists PulseNet has been designed with compliance in mind. The platform uses “zero-knowledge proofs” to verify transactions without exposing sensitive data. “We’re working with regulators in the UK, EU, and Singapore to ensure full compliance,” he said.

The startup’s timing is strategic. Global cross-border payment revenues are projected to reach £250 billion by 2026, driven by e-commerce and gig economy expansion. Traditional banks have been slow to modernise, leaving the door open for disruptors like PoundPay.

However, PoundPay is not alone. Rival fintechs such as Wise and Revolut offer low-cost transfers, and giant tech firms like Apple and Google are exploring payment integrations. “PoundPay’s edge is its blockchain infrastructure,” said Simon Harper, a fintech partner at VC firm Greyhound Capital. “If they execute well, they could become the infrastructure layer for cross-border payments.”

The company plans to launch PulseNet in beta with 50 corporate clients by July. Retail consumers will gain access later this year. PoundPay also aims to integrate with e-commerce platforms, allowing instant settlement for merchants.

Critics warn that the road ahead is treacherous. Blockchain scalability remains a challenge, and PoundPay’s private network may face congestion as adoption grows. “Public blockchains like Ethereum struggle with throughput,” said Rossi. “PoundPay’s solution is untested at scale.”

Drummond acknowledges the risks but remains confident. “We’ve stress-tested PulseNet with 10,000 transactions per second,” he said. “Our network is faster and cheaper than any existing system.”

The company’s investors include SoftBank and Sequoia Capital China, which led its Series C round in December. PoundPay plans to use the £400 million raised to hire engineers and expand into Asia and Africa.

If successful, PoundPay could force traditional banks to accelerate their digital transformation. Some banks are already preparing countermeasures, including a consortium exploring a shared blockchain platform.

For now, all eyes are on PoundPay’s July beta. “This could be the biggest shake-up in payments since the credit card,” said Harper. “Or it could crash and burn. There’s no middle ground.”

The British Wire contacted SWIFT for comment but received no response.