Leading Indian private sector bank, Kotak Mahindra has announced its collaboration with Ripple in order to improve their cross-border remittances. The bank will be using the settlement solution of Ripple named xCurrent, which will enable them to decrease the time associated with remittance payments by several minutes.
The Chief Digital Officer of Kotak Mahindra Bank, Deepak Sharma says:
“We harness new technologies to simplify and enhance banking services for our customers. xCurrent ticks all the boxes, and enables us to offer our customers a more transparent and efficient global payments service using blockchain. Joining RippleNet also expands our payment network globally by allowing us to connect with other members.”
Ripple’s South Asia Managing Director, Navin Gupta says:
“The payments problem is a global problem, particularly for those in emerging markets trying to send regular, low-value remittances overseas. Kotak Mahindra Bank can offer its retail customers a step-change improvement in their inward remittance experience thanks to xCurrent, and we look forward to connecting them to other RippleNet members to expand their global remittance offering.”
Over 25 global financial organizations including the famous British bank, Santander UK uses Ripple’s xCurrent to enhance their customer experience when it comes to cross-border transactions.
A Ripple enthusiast named XRPTrump tweeted:
“Indian private banking Giant Kotak Mahindra Bank (2nd largest by Market Cap) joins RippleNet. Will use xCurrent for cross-border txns. Kotak has a bigger Market Cap than both previous RippleNet partners Yes Bank & Axis Bank combined!”
A Twitterati named Ecent says:
“Beyond the joys of seeing another partner join RippleNet I am happy to see another example of there being SO MUCH going on behind the scenes that we’re not aware of. The #xrpcommunity needs to exhale. The professionals at Ripple & Coil are hard at work building the ecosystem”
According to a recent survey, India’s inward remittances have reached $69 billion during the previous financial year, which is 8 times more than its outward remittances. As the inward cross-border remittances are increasing every year, many Indian banks such as ICICI Bank, Yes Bank, Axis Bank are obtaining various blockchain technologies to advance their online transactions.
Ripple has another advanced technology called xRapid which provides liquidity for cross-border payments. However, this product has not been adopted by many banks as of now.
Mike, a blockchain supporter commented:
“Hopefully xRapid on the horizon for them.”
Another Twitterati named Anirban Biswas says:
“Been a customer of @KotakBankLtd for 2 years and I can say that in March they did a massive overhaul of the send/receive section of their app into a much strealined payments section. Very similar to PSPs. Now with this news it makes sense.”
Subscribe to AMBCrypto’s Newsletter
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”
Subscribe to AMBCrypto’s Newsletter