Ripple has been at the forefront of the payments sector, be it cross-border payments or domestic payments, proving to be a strong competition to already existing players in the industry like Swift and others.
As pointed out by Ripple/XRP enthusiast @RipplePandaXRP, Accenture’s Global Payments lead, Gareth Wilson, opined in Accenture’s banking blog, dated February 18, 2019, about the future trends that the payments industry could see in 2019. While predicting the trends that could arise this year, Wilson spoke about cryptocurrencies gaining traction, apart from the Open Banking trend gaining more ground in the Middle East, Asia, and Europe.
He said that he expected users to soon “see cash management products” that will “use Bitcoin and Ethereum”. He further stated:
“Ripple’s network for cross-border transactions will continue to grow significantly, attracting more banks and corporates, leading to rising transaction volumes.”
Ripple has been tirelessly working with domestic and central banks around the world to improve payments to the general public, as well as the corporate sector. Ripple plans to create a network of banks on the RippleNet that use Ripple’s blockchain technology, like xRapid, xVia, and xCurrent.
Ripple’s xRapid, in specific, has gained a lot of traction since it facilitates the transfer of funds across borders seamlessly. xRapid leverages XRP to make these transactions happen, saving a significant amount of time and money.
xRapid takes about three to four seconds and saves about 65% of the transactions fees in contrast to days and heavy fees incurred in the traditional payment system.
Other mentions in Wilson’s blog included instant payments and Open Banking. He stated:
“The fusion of instant payments and Open Banking will generate new payment methods and schemes and replace card payments in the long run.”
A Twitter user, @akdrain, commented:
“Woah! Prominent personalities around the world are acknowledging Ripple’s progress. About time SWIFT goes out of business. Good find!”
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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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