FOMO Pay, a Singapore-based payment provider, has announced a partnership with Ripple, a firm specializing in enterprise blockchain and crypto solutions. This partnership will see the two firms collaborate to create a crypto-based cross-national solution to improve payments.
A New Payment System?
FOMO Pay is lauded as one of the world’s leading payment solutions. This payment platform specializes in cashless payment processing tailored to customers’ known preferences, location, risk profiles, and more. The firm offers digital banking solutions in Africa, The Middle East, Latin America, and South East Asia.
On the other hand, Ripple is a world leader in offering enterprise blockchain and crypto solutions. The firm has stayed true to its vision by creating a system to provide users with seamless, real-time global payments on a global scale. By unlocking trapped capital, Ripple’s solution has become a staple in the world of digital finance.
In the announced partnership, the collaboration between the two firms will offer many benefits to users worldwide. This new system will merge the two services to improve cross-border treasury flow by using Ripple’s crypto-enabled enterprise technology.
How it Works
Ripple’s system capitalizes on leveraging XRP via On-Demand Liquidity (ODL).ODL has in the past been used by small-to-medium enterprises (SMEs) and payment services providers (PSPs) to make cross-national payments. The system has worked to allow the SMEs and PSPs to develop better and grow to utilize capital trapped in cross-national payments.
Under this new system, FOMO can leverage ODL for treasury payments. By doing this, FOMO can access liquidity for EUR and USD all year round. This feature will enable PSPs and SMEs to make instant payments from across the globe. This new same-day settlement is the key feature of the new system that will greatly benefit users. The new system solves internal cash flow issues while improving business operations and reducing costs.
Why Is the Payment System a Gamechanger?
Before introducing this system, PSPs and SMEs faced great financial issues. These users employed the use of other treasury management methods to access the EUR and USD. These methods were slow and cost ineffective, taking 1-2 days to complete payments.
The methods used faced the same problem that has enveloped the traditional finance system for the last few years: The traditional system boasts of antiquated infrastructure that fails to meet users’ needs. As a result, the users face a lot of friction and difficulty in making payments: The users need to meet unfavorable pre-funding requirements to transfer money. This hiccup caused havoc and even led to the wastage of resources.
Thus, with the inception of FOMO and Ripple’s new instant payment system, all these issues can be resolved. The system will greatly benefit SMEs and PSPs as they were inconvenienced by the lack of adequate solutions that plagued the finance system.