- There are now 200 banks using RippleNet
- The company has been signing partnership after partnership to expand its market share
- Ripple Labs recently signed a partnership agreement with SendFriend
American blockchain company Ripple Labs continues to accumulate more partners onboard RippleNet. After news of its partnership with remittance company SendFriend, Dubai and Bangkok were abuzz with Ripple’s newly inked deal with Finablr and Unimoni. The deal is poised to make remittances bound for Thailand a lot cheaper.
Ripple disrupted the finance world when it launched RippleNet. According to experts, this is mainly due to its affordable overseas transfer rates. Apart from this, it also makes it possible for customers to transfer money internationally within seconds.
“The adoption of blockchain opens up considerable potential to streamline remittances and provide a frictionless, fast and secure payments experience”, said Promoth Manghat, Finablr’s executive director and chief executive.
RippleNet is not only serving banks and other financial institutions and brands outside of America though, as its 200-strong member banks include Standard Chartered and PNC Bank. The latter joined the network in 2018.
“Ripple’s technology will have an immediate impact on each of those groups, enabling PNC’s commercial clients to receive payments from overseas banks in real time”, a press release from the blockchain firm said.
Ripple’s expansion does not only benefit the company and its partners, according to observers. It also helps migrants save more for themselves and their families back home.
Data from the World Bank show that remittance fees are quite high and are considered a major problem for many people who regularly send money to relatives. With migrants around the world spending $45 billion in fees alone against the over $680 billion sent to their home countries, it is undeniable that rates are truly expensive. Blockchain, according to its proponents, can get rid of expensive fees.
Ripple’s partnerships in the Middle East and Asia are also supported by World Bank numbers. According to the organisation, remittances going to Asia grew by 13% last year. The Philippines, for example, is one of the major recipients of remittances coming from the United States. The country also receives remittances coming from Canada and Europe. Thailand and other Asian nations, on the other hand, receive a huge inflow annually and most of these funds come from the Middle East.
Global remittances grew by 10.3% in 2018 and amounted to a whopping $689 billion. A total of $528 billion of which was sent to developing countries, reports say. Global remittances will likely reach $715 billion this year, with the bulk of the money going to developing nations in Asia.
Ripple’s expansion to Asia is a good move, observers note, but what makes its partnerships special is the fact that many leaders from the finance sector have always doubted blockchain. Despite a negative outlook for businesses like Ripple, the American brand keeps working on its goals.
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