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TransferGo, which was already a part of RippleNet, will now start to use Ripple’s ODL for its cross-border transactions.
Last year, the U.K. payment remittance platform TransferGo, announced that it had entered a partnership with Ripple and joined RippleNet, with a focus of helping Indian migrants in the U.K. make cross-border payments back to their families. However, the company has now announced that it will take the relationship a notch higher, and move its business to Ripple’s On-Demand Liquidity (ODL) which uses XRP.
Speaking about the move, CEO Daumantas Dvilinskas has suggested that ODL will shoot the company to the forefront in India, possibly increasing the volume of remittance it currently handles. He said:
“Ripple gives us a competitive edge in India, which is the largest global cross-border remittance market, and today we’re moving more than a couple of million pounds per year.”
Dvilinskas is particularly excited about the move to ODL because the former method has been costly and time-consuming as it required specifically-tailored links to be built with each banking partner as they had their own different tech setup.
“Every integration was bespoke, which took up a lot of tech resources and was time-consuming. With RippleNet we saw a scalable opportunity to have one integration for multiple partners, so we don’t have to redo it each time”, explained he.
All of Ripple’s solutions bring improvements to the companies that join RippleNet. With faster and more effective payments, operating costs, as well as charges payable for these transactions, have been significantly reduced. Dvilinskas also added that through Ripple, “we’re helping people save up to 90% on traditional fees for cross-border transfers.”
Ripple continues to expand its offerings and onboard a lot more firms, increasing ODL use-cases and also increasing adoption for XRP as well. This is because ODL allows instant cross-border monetary payments, easily converting two fiats, with XRP as the link. The company also recently completed its earlier announced $50 million MoneyGram investment, which means that Ripple now owns 9.96% of the payment giant’s common stock.
In an announcement earlier this month, Ripple said that its network of firms has surpassed 300 customers and has also seen “10x year-over-year growth in transactions.” Apart from MoneyGram and TransferGo, other platforms that use ODL include Viamericas, FlashFX, Interbank Peru and goLance. Ripple CEO Brad Garlinghouse said:
“This year has been our strongest for Ripple yet. In 2019 we’ve seen continued momentum with customers, growth of RippleNet and adoption of On-Demand Liquidity…We’re excited to continue this momentum into next year and for the expansion of ODL into new markets.”
Today, RippleNet is available in 45 countries across 6 continents and supports payouts in more than 70 countries. The company has further said that from next year, it intends to go deeper into Brazil, Thailand, and Australia, as well as facilitate cross-border payments between Japan and Vietnam.
TransferGo was founded back in 2012 and now has support for 22 different currencies in 47 countries. The company is looking to enter new markets in 2020, spreading to Southeast Asia, Africa, and Latin America as well.