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The new payment corridor is a significant move for Ripple as the UAE is the second largest economy in the Arab world.
US-based payment protocol Ripple is expanding into the United Arab Emirates (UAE) through its investment partner Tranglo. Tranglo is known as a cross-border payments company, offering enhanced cross-border payments through RippleNet. Also, the payments company provides its services across 120 countries, 650 mobile operators, 2,200 banks and wallets, and 140,000 cash pickup points. Announcing the extension, Tranglo wrote on Twitter (NYSE: TWTR) that it now offers payment services in the UAE through Ripple. The tweet says:
“UAE is now part of the Tranglo Connect network, offering instant payments to the second largest Arab economy.”
Tranglo Uses Ripple Payment Solution to Open New Payment Corridor in UAE
With the expansion, the partnership between Ripple and Tranglo will push the payment protocol into providing instant payment services to the UAE. The new payment corridor is a significant move for Ripple as the UAE is the second largest economy in the Arab world.
In addition to being the second largest economy in the Arab Gulf, the UAE is one of the world’s top remittances nations. There was a record of $6.78 billion in remittance inflows in the region and $42.7 billion in remittance outflows. Additionally, cross-border settlements in the UAE surged 8.2% within the first three months of 2022. Due to the additions, the Abu Dhabi Commercial Bank predicted that the country would rise by 6% by year-end.
In September 2021, Tranglo completed Ripple’s on-Demand Liquidity (ODL) deployment. The test was successful, with 250,000 transactions equaling $48 million in the first 100 days. Months after the trial, the payment company enabled the ODL services across all its 25 payment corridors. Tranglo said the enablement of Ripple’s ODL would be used in processing payments on clients’ behalf.
Aside from joint businesses, Ripple has a 40% stake in Tranglo. The payment protocol acquired the stake to scale RippleNet and the ODL services. At the time, Tranglo CEO Jacky Lee said the collaboration would ensure that it delivers accessible and quitable financial services to its consumers. He added:
“By partnering closely with Ripple and introducing On-Demand Liquidity to new markets, we aim … to provide accessible and equitable financial services to the masses.”
On the other hand, RippleNet General Manager Asheesh Birla said the state acquisition tallies with the company’s track record. Birla is confident in Ripple Labs’ ability to facilitate robust payments and offer excellent customer services.