Dilip Rao, the Global Head of Infrastructure Innovation at Ripple, on December 14, posted a report by ChannelNewsAsia, which revealed that his company and the UAE Exchange have planned to introduce blockchain in the launch of cross-border remittances in Asia. This was reported to take place in the first quarter of the next year. Regarding this, the Chief Executive Officer of the UAE Exchange, Promoth Manghat stated:
“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.”
Appreciating the new technology, Manghat also pointed out that blockchain is proving to be of promising potential in the payments industry, but still requires much progress before hitting mainstream adoption. In his words:
“Blockchain holds tremendous promise for the industry but there is progress to be made before we see it go fully mainstream.”
Ripple, on many occasions, have been observed to hold the view that the Association of Southeast Asian Nations [ASEAN] region is quicker with blockchain adoption and regulatory framework than the US and other parts of the world. With significant partnerships around Asia, such as Siam Commercial Bank and SBI Holdings, Ripple has been progressing at creating the best use cases for the technology in the payment industry.
It has also been reported that Asia is one of the biggest consumers in the remittance sector and participates heavily in global payments. The UAE Exchange is a company that falls under its parent company known as Finablr and deals in remittances, foreign exchange and bill payment solutions exclusively.
Ripple and Finablr believe that blockchain technology will bring a revolutionary change in the remittance industry wherein both the players plan to be prominent actors to propel the transition.
The two companies made the first announcement of their partnership earlier this year, in February. Here, UAE Exchange was addressed as the largest firm to use Ripple’s blockchain technology for payment processes.
Bruce Kyaw, a cryptocurrency and blockchain space follower, on the news commented:
“With all these companies jumping on to the XRP train, they are all also HODL’n huh? There’s no volume, no one’s using.”
Another Twitter user and a cryptocurrency industry enthusiast, Yassin Mobarak also wrote:
“Great news, but a little vague. Does this new “Blockchain payments” solution use xRapid or XRP or not?”
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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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