Ripple has been busy building partnerships and capturing global markets one step at a time. Finablr’s UAE Exchange and Unimoni, who had partnered with Ripple in 2018 have announced going live with cross-border payments using Ripple’s blockchain technologies.
Finablr is a UAE-based payments and foreign exchange company that has partnered with Siam commercial bank, in Thailand and is also connected to Ripple.
In a statement on Sunday, Finablr announced that it will provide cross-border payment services using RippleNet and it also mentioned that it had plans to expand these services to other countries.
Promoth Manghat, the director and chief executive of Finablr stated:
“The adoption of blockchain opens up considerable potential to streamline remittances and provide a frictionless, fast and secure payments experience.”
Considering South Asia’s chunk of remittance was roughly $613 billion and was one of the largest contributors to the remittance sector, the partnership between Ripple and UAR’s Finablr could be huge. A large portion of the contributions to the above comes from expatriate workers in the Middle East.
Moreover, since the usual cross-border transfers are prone to various problems the transition to blockchain technology could benefit a lot of the involved parties.
In addition to the above, in December 2018, Promoth Manghat said:
“Blockchain holds tremendous promise for the industry but there is progress to be made before we see it go fully mainstream… We expect to go live with Ripple by Q1, 2019 with one or two Asian banks. This is for remittances to start with, from across the globe into Asia”
Finablr has been busy in terms of acquiring companies to further facilitate cross-border payments and increase their reach. A example of this was its recent acquisition of Indian digital payments firm TimesofMoney.
As reported by The National:
“The company [Finablr], which is owned by Indian-born businessman BR Shetty, processed more than 150 million transactions in 2017 through its network that includes Xpress Money, Unimoni, Remit2India, Ditto and Swych.”
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SendFriend goes live in New Jersey; prepared to take on a $11 billion remittance corridor with Ripple
SendFriend, a next-generation remittance service that focuses on cross-border payments between the U.S. and the Philippines, today announced that it had gone live in the state of New Jersey, via a Twitter announcement.
We’re all excited for our launch, and today is the Day (for New Jersey)! Join thousands of Filipinos and come out to the Philippine American Friendship Committee Parade and check out our booth – We will be here all day! pic.twitter.com/PkcrGChwZ9
— SendFriend (@sendfriendinc) June 23, 2019
Ripple and SendFriend’s partnership was announced in late 2018, with the CEO of the latter, David Lighton, expressing his excitement at a Barclays Event in 2019. At the same event, Lighton also confirmed that SendFriend would be using Ripple’s xRapid payment solution that leverages XRP as a liquidity provider.
There is approximately $11.09 billion transferred between the U.S. and the Philippines in remittances every year. These largely use traditional payment methods that are slow and less efficient, when compared to newly developed blockchain-based solutions. The chart below shows the flow of remittances into the Philippines, with the U.S. accounting for the highest volume.
By using Ripple’s xRapid payment solution, money can easily be transferred in a few seconds. Not only does this save millions in fees by taking away middlemen, but it is also less time consuming.
Although xRapid has slashed fees and time for cross-border payments drastically, it has not gained traction due to a lack of regulatory clarity around cryptocurrencies. On February 11, 2019, SendFriend had announced the provision of an option for Overseas Filipino Workers [OFW] to send money “securely and reliably” across borders, with fees that are “65% lower than the industry average” in one “seamless flow.”
David Lighton had said,
“We are humbled by the support of our investors, who share in our vision to reduce the costs and improve the experience for the millions of Overseas Filipino Workers (OFWs) who send money home to support their families… This investment will allow us to build out our team, focus on community engagement, and marketing efforts.”
A Twitter user @mister_pace, commented,
“Based on these rates. You save about $13 to send 1000 using SendFriend over The next lowest MoneyGram”
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