On 26th September, Ripple’s partner and Japanese Fintech giant SBI holdings announced today that its subsidiary SBI Ripple Asia is registered as a substitute agent for electronic payments. The registration was completed earlier today under the Act No. 2 of the Kanto Local Finance Bureau, Electronic Settlement Agency No. 2.
The announcement stated that only those registered with the Finance Bureau will be able to run an electronic payment agency in Japan. The rule came into existence after an Act was passed in Japan on 1st June 2018, to revise several banking laws.
Through this act, agencies can utilize Information Technology utilities, such as an open Application Program Interface [API] to obtain information like customer balance, usage history, and provide them to depositors. The agency will also be able to provide services such as the transfer of orders from one bank to another on behalf of the “depositor”.
This move will clear the way for SBI Ripple Asia’s smartphone application “MoneyTap”. MoneyTap is a bridge to the next-generation financial infrastructure powered by Ripple’s Distributed Ledger Technology [DLT]. The app is said to create an environment that allows quick, safe and comfortable transfer of money between individuals.
SBI Ripple Asia heads the Japan Banking Consortium which holds over 80% of all the banking assets in Japan. The financial institutions participating in the Consortium will be able to integrate with MoneyTap using an open API. Previously, the company stated that 3 banks which are a part of the Japan Banking consortium will be the first to go live on the app.
The company concluded by stating:
“SBI Ripple Asia will provide appropriate information to users in addition to the registration of electronic payment agency operators in order to ensure that the electronic payment agency business pertaining to “MoneyTap” will be properly implemented in the future.”
They further added:
“Appropriate implementation of the contract and the disclosure obligations of the participating banks. We strive to achieve a safe and easy-to-use, non-friction settlement, and through cashless, we will develop new industries and reduce social costs and increase productivity.”
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