Ripple has lately been promoting its products, xRapid and xCurrent which has earned a positive approach from most financial institutions. They recently tweeted on how xRapid can contribute to ‘global saving’. The aim at Ripple is to see digital assets used in a way that goes beyond making payments faster for businesses.
Ripple’s mission concentrates on two main paradigms that they aim to tap on, for establishing their view on the internet of things:
- The movement of money – instant, rapid, and quick
- Cost of money movement – low-cost or free
Ripple tries to look at the financial market from an end users perspective and hence they have come up with the product xRapid. Ripple’s community, along with xRapid, aims to make a lasting impact in the world’s remittance market for families and communities around the world.
Remittance market is a compilation of remittance around the world. Remittance is the funds that an emigrant sends to his or her country of origin via wire, mail or online transfer. Total global payments as cited by Ripple’s website are close to $600 billion annually and the fees associated with these payments are nearly $30 billion per year.
Majority of them are small remittances, according to the World Bank, averaging about $500 each. This data indicates that the money at large is moving from individuals working abroad to loved ones in the developing world. Ripple’s website states:
“These individuals are often working several jobs and their families back home depend on these funds to survive and grow.”
The results of the first pilot of xRapid were announced on May 10th, 2018, leveraging the technology behind XRP. This product aims to make cross-border payments, an instant process. Some of the financial institutions using xRapid for the pilot supposedly saw a savings of 40-70 percent in the significant remittance corridor between the U.S. and Mexico. Regarding this pilot texting, their website mentions:
“An average xRapid payment took just over two minutes, compared to today’s average of two to three days when sending cross-border payments. The portion of the transfer that relies on the XRP Ledger takes two to three seconds, with the additional processing time attributed to movement across the intermediary digital asset exchanges and local payment rails.”
With this 40-70 saving, while using xRapid, Ripple suggests financial institutions that this saving can be passed down onto consumers [those sending remittance payments]. The ultimate aim is cost savings, along with a better payment experience, will be passed directly to the user.
” In economics, this is the idea of “perfect competition.” It means no one can company can control price, and ultimately, consumer benefits.”
In a study conducted by Ripple in the top 5 remittance destinations in the world, they found the estimated $16.5 billion in savings could provide 3.27 billion meals [at an average cost of $4.13 per meal], 263.07 million monthly bills [at an average of $51.32 per month], and rent for 49.9 million people [at an average of $273.34]. With this study and statistics, they aim to make use of xRapid for creating a positive impact on people.
[email protected], a Twitter user commented:
“Good stuff maybe
#westernunion should read the article and on a tangent note it doesnt make any more sense to refer as emerging markets or 3rd world etc 450BUSD of 600B is not emerging market isnt #notanymoreemergingmarket #ripple #xrpthestandard way to go #xrp.”
Ymamai, another Twitter user commented:
“Why compare it to meals…its not going anywhere else but the institutions pockets…”
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