The need for faster, cheaper, and more efficient global transactions has pushed crypto networks like Hedera Hashgraph and others to compete with legacy banking systems.

Ripple, which has built its reputation in cross-border banking, and Stellar, which has focused on financial inclusion and remittance payments, offer competition with HBAR.

While these three networks share the common goal of transforming global payments, they differ in their approaches and adoption strategies. Let’s explore where HBAR sits between Ripple and Stellar Lumens.

Ripple: The Banking-Focused Rival

On Hedera, transaction costs are minimal, often only a fraction of a cent per transaction, and the Hashgraph consensus is highly energy-efficient compared to many traditional blockchain networks. These characteristics make Hedera appealing for enterprises thinking of utilizign distributed ledger technology for payments.

Ripple, via the XRP Ledger, has spent years positioning itself as a solution for international banking and financial institutions for cross-border payments and legacy system adoption.

Ripple’s strategy aims to replace outdated cross-border settlement systems with one that utilizes blockchain and crypto assets, such as XRP and RLUSD, with XRP serving as a bridge asset.

By using Ripple Payments to facilitate transactions, banks and payment providers can reduce the cost and time associated with moving money across borders. It’s revolutionary.

Transactions on the XRP Ledger typically settle within seconds, and fees are almost negligible, placing Ripple’s technical performance in a similar league as Hedera Hashgraph’s.

Where Ripple truly differentiates itself is in institutional adoption for its payment services specifically. Ripple has forged relationships with major banks and payment providers around the world, including Santander and SBI Holdings in Japan, who plan to introduce Ripple payments and the RLUSD stablecoin to the region in 2026.

These partnerships have given Ripple a strong presence in institutional finance. However, Ripple has also faced challenges in regulatory compliance. Although the SEC has ended its case against the XRP token, there’s still work to be done when it comes to international adoption outside of the US.

Hedera is known as one of the most institutionally friendly networks, with the Hedera Council, made up of many Fortune 500 companies, including Google, bringing an additional layer of trust and reliability.

Stellar: Payments for Financial Inclusion

Stellar, founded by Ripple co-creator Jed McCaleb, has taken a different path, focused on financial inclusion and grassroots payments in developing regions.

Stellar has become known as a platform for small-scale transfers, particularly in developing economies where access to banking services may be limited.

Partnering or working with firms such as DTCC, MoneyGram and PayPal have allowed Stellar to serve as an on-ramp and off-ramp between crypto and local currencies around the world, making it an important player in low-cost cross-border payments.

Stellar has also emphasized the ease of issuing tokens and stablecoins on its network, similar to Hedera’s Stablecoin Studio, which allows firms to create, launch, and manage their own stablecoins.

Stellar’s focus on empowering individuals and small businesses stands in contrast to Ripple’s focus on big banks. It seems Stellar has carved out a unique niche for itself in the payments landscape, which other networks would find hard to penetrate.

Comparing Approaches

Although Hedera, Ripple, and Stellar all aim to improve the payments system, they pursue different audiences and with different strategies.

Ripple has centered itself on banking infrastructure and global finance, Stellar has dedicated itself to financial inclusion, while Hedera has positioned itself as an enterprise-trusted network that can support both corporate and consumer use cases, supporting a DIY attitude with Hedera’s toolkits.

Their technical foundations also differ, with Hedera’s Hashgraph consensus being very distinct from the XRP Ledger’s blockchain and Stellar’s consensus protocol.

Hedera’s Path Forward in Payments

For Hedera to compete successfully with Ripple and Stellar, the network can leverage its unique strengths and existing industry connections to attract firms, if it need be.

Hedera’s long-term strategy has been to emphasize credibility in the finanical world and long-term trust, positioning itself as a network where enterprises can comfortably innovate without regulatory surprises or setbacks, using tools provided to them by Hedera.

Ripple’s established partnerships and Stellar’s traction in remittances provide strong competition to the point that all 3 networks could very well just coexist without heated competition.

The future of payments may not be determined by how fast a network can go or how cheap and cost-effective it is, as both XLM, XRP, and HBAR easily excel in these areas.

Instead, it may depend on which networks can secure trust with firms and navigate regulatory barriers while integrating into real-world financial systems. Hedera, with its council-driven governance and emphasis on compliance, is uniquely positioned.