Lisa O’Connor, Managing Director, Asia Pacific at SWIFT, spoke about whether the payments network would be using blockchain technology for providing payment solutions, in an interview with Ran NeuNer for CNBC Crypto Trader. She also discussed whether XRP could disrupt their business.
The managing director was asked if SWIFT would implement blockchain solutions for bank-to-bank for foreign exchange transfers. To this, she said that “there is work” going on from the market infrastructure perspective and that the company’s stakeholders are looking at the possibility. She said:
“we would be very open to working with DLT platforms who are looking at that but we are not in the market ourselves to do things like multilateral netting to do clearing of transactions, that’s not what Swift does. We are at our core, we are a platform and we are a place where we could connect up potentially to those infrastructures”
This was followed by opining on the possibility of XRP disrupting their business, considering that SWIFT has been one of the top competitors for the XRP community. On this, she first remarked that the payment space surrounding DLT is “really interesting”.
“I would just say that I think that the numbers speak for themselves in that. The old days of it taking several days to make a payment cross-border don’t exist anymore it’s down to minutes and or seconds even directly connecting into real-time payment system.”
She added that SWIFT utilizes Global Payment Innovation, which enables fast payments, transparency, and takes friction out of the payment process. She said that this payment solution takes care of $300 billion payments a day. She said:
“across the Swift Network 50% of our payments so it’s a massive amount of payments and it’s a massive amount of our members that are already leveraging this so if you compare that to others in the market yes there is discussion but I think that the figures speak for themselves”
Furthermore, she was asked if SWIFT would build their own blockchain or utilize the blockchain solutions already existing in the space for their applications. To this, she stated:
“I think this is a bit beyond me to foresee what our what our CEO might do but I would say that I think we would be open to leveraging our platform more in the future”
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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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