- Credit card giant latest traditional financial institution to adopt Ripple product for cross-border payments
- Blockchain technology will help Amex users send and receive funds instantly
- Company is one of a growing number of institutions embracing Ripple's technology
Officials have confirmed that credit card giant American Express is the latest traditional financial institution to adopt Ripple's xCurrent blockchain solution for international payments.
Amex Vice President and General Manager of Global Commercial Services UK and Russia Colin O'Flaherty made the announcement at an industry event held in Amsterdam last week. He said incorporating xCurrent would allow for instant international money transfers between customers, thus eliminating lengthy transaction wait times, one of the biggest challenges for those sending and receiving remittances.
Late last year, American Express, in partnership with Santander Bank, announced plans to begin using Ripple to facilitate international P2P payments between the US and the UK. Under this agreement, payments made on the American Express FX International Payments platform are processed by Ripple's blockchain network, RippleNet.
The new deal will make cross-border payments between businesses and international customers faster, easier and cheaper.
Because xCurrent will integrate with the existing infrastructure on the Amex payments platform, the transition for customers should be seamless. SMEs that send and receive international payments on a regular basis will now be able to use Ripple's blockchain network for global transactions.
According to Ripple CEO Brad Garlinghouse, the partnership will streamline international transactions for SMEs. He explained that by integrating xCurrent, "a bank or non-bank like Amex can use Ripple to connect and just exchange value from one fiat currency to another directly, without the need for any intermediate blockchain currency."
American Express plans to roll out this new blockchain capability gradually over the next several months.
