The financial services industry has undergone significant change since the turn of the last century. We’ve witnessed the growth of the FinTech industry, the sky-rocketing popularity of cryptocurrencies, and, last but not least, the adoption of blockchain technology. It’s paramount to embrace this disruption because technological change is the most creative force, not the most destructive one.
At present, an ever-increasing number of people is sending money home to their loved ones, in a multi-billion-dollar global economy. Crypto offers a very simple way to send money around the world via blockchain. Bitcoin, Ethereum, Cardano, and Bitcoin Cash seem to be the most popular digital currencies. However, it’s Ripple that provides the much-awaited solution to effective money transfers across borders.
How Ripple will change the future of money transfers
When you think of Ripple, you think of cryptocurrency. What might come as a surprise is the fact that Ripple is actually a platform. To be more precise, it’s a gateway to digital payment. Ripple operates on an open-source and peer-to-peer decentralised platform. It has been adopted by several banks and credit companies.
Ripple will play a very important role in the future of international wire transfers, enabling instant and direct money transfers between the parties involved.
Ripple has introduced 3 tools:
Currencies Direct has already completed an international payment over Ripple’s XRapid platform utilising XRP. The company was able to carry out numerous transfers between pre-screened organisations in a matter of seconds. The result was an overall drop in Currencies Direct rates and time. Attention needs to be paid to the fact that XRapid is solely for enterprise use.
TransferGo will embrace Ripple’s payment solutions
TransferGo is the most renowned online alternative to banks in terms of realising international wire transfers. The remittance company, which is based in the UK, wants to take advantage of Ripple’s solutions. The focus is on On-Demand Liquidity, which eliminates the need for pre-funding as far as cross border payments are concerned. TransferGo seeks the high-remittance market.
There is no way of knowing for sure which of Ripple’s services the English company will offer for sure. What is certain is that the remittance company will upgrade its services and develop additional products. In 2020, even a couple of minutes will be too slow. This is precisely the reason why TransferGo will team up with Ripple in an attempt to find the perfect solution. The solution will help clients save a great many fees for cross-border transfers. So, it’s a win-win situation. Everyone will be able to make real-time payments.
All in all, Ripple will solve many issues in the financial services industry. Those who don’t yet use XRP for international money transfers should change their mindset. Money is transferred from point A to point B almost instantly, which is no little thing. More and more financial institutions collaborate with Ripple, so it shouldn’t come as a surprise if XRP will become the preferred solution for making money transactions in the modern era.