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RippleNet supports currencies that were previously inaccessible to the remittance firm. So called “smaller currencies,” including the Malaysian ringgit or Bangladeshi taka, formerly required Xendpay to form local banking partnerships.
Ripple announced that they went into the partnership with the UK remittance firm Xendpay therefore widening their portfolio made from big companies that are already using Ripple’s product across their payment services – MoneyGram, Standard Chartered Bank, American Express etc.
From Xendpay they disclosed what kind of payment solution they plan to adopt, specifically Ripple’s front runner solution RippleNet, that connects more than 200 banks and payment providers for cross-border remittances.
Bhavin Vaghela, Xendpay’s Head of Product Innovation explained that before, when they would send Thai Baht, it took 3 to 4 days for the payment to be processed.
“Thanks to RippleNet, a customer in Germany can log onto our platform at 3AM on a Sunday morning and the money will be in their beneficiary’s bank account in Thailand within an hour. More than 90 percent of our recent payments to Thailand over RippleNet have been delivered within 10 minutes”.
What makes Xendpay different from others is the company’s Pay What You Want feature that allows users to abandon fees on transfers totaling around $2,500 over a calendar year. This makes certain that the full size of a customer’s hard work is appreciated by their families. The Pay What You Want feature also expands to businesses, who can abandon fees on transfers totaling around $5,000 per calendar year.
Vaghela added that their suggested fees start at GBP3.50, which is already low for a cross-border payment.
“Though it may not seem like much, when you translate that into a currency like Vietnamese Dong, it’s a significant amount of money. Our customers can choose to pay our suggested fee or change it to one they feel is fair. I think of our fees as similar to providing a tip. If you feel like you’ve been treated well, received a good rate and enjoyed the experience, you might pay the recommended rate. We’ve even had clients pay us more.”
Founded by Rajesh Agrawal back in 2012, Xendpay is a remittance service that positions itself as a money transfer redeemer to more than 200 countries including cheaper rates than it’s the industry median.
Ripple is already known for developing several blockchain-based solutions that are enabled for cross-border money transactions between banks much quicker and cheaper than the current systems have been allowing.
Ripple Investing in Moneygram to Deploy XRP
San Francisco-based startup has invested $30 million in global money transfer company MoneyGram making the use of XRP, Ripple’s digital currency, possible in MoneyGram’s cross-border payment process.
MoneyGram customers making payments on its international platform have access to Ripple’s enterprise solution, that allows real-time FX settlement through its cryptocurrency, XRP.
xRapid will become a trait in Ripple’s partnerships with banks and financial companies because it enables them to unlock liquidity and access multiple passages with only one pre-funded emerging account.
MoneyGram will try to use XRP to introduce blockchain-enabled cross-border payments in its pilot version. MoneyGram will use Ripple’s on-demand liquidity product, xRapid, to make blockchain payments widely accessible, minimizing the time and cost of the agreement, while, in the same time, it maintains the level of security.
From Xendpay they said they would continue opening new corridors in order to enable more migrant workers, students and small businesses to transfer money inexpensively and efficiently.
“As traveling to and working in other countries has become easier, people are also increasingly more comfortable with transferring money digitally. The rapid growth of the online payments market demonstrates this. It’s now a highly competitive sector with a growing number of new entrants. By helping us continually open up new markets, keep our fees low and reduce processing times, Ripple ensures Xendpay remains ahead of the competition.”