Last year, a number of global financial companies and banking institutions joined RippleNet to enhance cross-border payment services. RippleNet is a blockchain consortium of over 200 companies that use Ripple’s blockchain solutions for faster and low-cost payments.
Earlier this month, Ripple added 13 new customers under its RippleNet network to leverage its blockchain solutions. In order to encourage more companies to join the RippleNet bandwagon, Ripple announced a new Accelerator Program. Currently, RippleNet operates in 40 countries across six continents.
RippleNet Accelerator Program
The RippleNet Accelerator Program aims at rewarding financial institutions promoting commercial payments on RippleNet. The participating companies shall receive rewards in form of rebates via the accelerator program. Also, from its own XRP holdings, Ripple has pumped $300 million of XRP into this new scheme. The Accelerator Program is split into two parts: ‘Adoption Marketing Incentive’ and ‘Volume Rebate’.
The Adoption Marketing Incentive maps the customers’ marketing spending to promote Ripple’s products and services to its end-customers. Furthermore, Ripple will provide its participating customers with “tailored marketing content, messaging frameworks and tools, further reducing their marketing costs”.
Note that the participating customers will get incentives on the first-come-first-serve basis. The incentives will be available either in the form of XRP or USD. However, customers willing to receive the rebates in XRP will be imposed with selling restrictions to promote healthy XRP markets. Monica Long, VP of Marketing at Ripple, said:
“We’re borrowing a page from the likes of PayPal (with their early days adoption and referral bonuses), implementing incentives to accelerate network effects on RippleNet. Since we’re offering the incentives in XRP, we anticipate seeing an added benefit of building an easy on-ramp for institutions to use XRP in their payment flows to lower liquidity cost in the future. Early reception of these XRP incentives in a test phase has been very positive.”
Volume Rebate for XRP
This portion of the accelerator program will offer integration-fee and licensing rebates to RippleNet customers. However, to receive the volume rebates, the members have to clock certain volume and integration milestones within specified deadlines. Also, based on the volumes processed, the rebates can be anywhere between 50 to 300 percent of integration fees or first-year license fees.
The reason behind developing the volume rebate is to push adoption and usage of Ripple solutions. Also, it will be available to the customers in the form of XRP or USD.
Ripple’s Blockchain Solutions Gaining Traction
With over 200 customers under the RippleNet network, Ripple’s blockchain solutions are getting huge demand from financial institutions. Earlier this month, Ripple made an entry in the Australian continent with FlashX launching a new XRP-based exchange. This move will supposedly give a big push to the mainstream adoption of XRP.
Also two weeks back, London-based Euro Exim Bank became the first traditional financial institution to fully integrate Ripple’s XRP-powered xRapid solution. The xRapid solution uses XRP tokens to provide on-demand liquidity to banks and payment service providers for cross-border payments.
Recently, Mercury Fx also clocked the largest-valued payment using XRP for funds transfer between London to Mexico. According to CoinSpeaker report, over $4500 USD were sent in a single transaction using XRP tokens.
* To learn more about XRP coin, Ripple Labs company and their innovative solutions, please check out our awesome “What is ripple?” guide.