Ripple announced that its payment platform, RippleNet, has acquired 13 new clients, bringing RippleNet’s total number of clients to over 200.
The arriving clients include Euro Exim Bank, SendFriend, JNFX, FTCS, Ahli Bank of Kuwait, Transpaygo, BFC Bahrain, ConnectPay, GMT, WorldCom Finance, Olympia Trust Company, Pontual/USEND, and Rendimento.
Ripple announced that its clients JNFX, SendFriend, Transpaygo, FTCS, and Euro Exim Bank will leverage their XRP coin to source on-demand liquidity when sending funds on behalf of their customers.
This helps the institutions bypass the problem of pre-funding accounts in various locations before they can conduct transfers, as well as rendering the transactions cheaper compared to traditional banking institutions.
Even for those firms that don’t use the native Ripple token, they will be able to make use of the company’s API to enjoy low-cost fund transfers. This tackles the problems generally faced by institutions that conduct cross-border payments, with Ashay Mervyn, head of JNFX, saying:
“Payments between countries are beset with inefficiencies—inefficiencies around cost, inefficiencies around speed and inefficiencies around transparency. RippleNet is specifically geared to address these problems.”
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According to the post, Ripple secured over 100 new clients in 2018 and as of now, are gaining between two to three new clients each week and are looking forward to a very productive year. The volume of customers sending live payments through the platform also increased by 350 percent. 2018 also saw Ripple score a number of prominent as well as its currency being picked as the base currency for R3’s new payment platform.
Using traditional banking institutions, the sending of funds across borders is usually very time-consuming as well as being very costly due to high transaction fees.
Such bottlenecks have created somewhat of a “race to the bottom” for institutions looking to send money. This has obviously influenced not just blockchain firms but the traditional banks as well, considering how many of them have signed up for the Ripple program.
With time, it is possible that the blockchain industry could set the standard for cross-border funds transfer both in the blockchain industry and also in the financial sector at large.
This will benefit the consumers in that they can easily send and receive funds across borders at lower costs. It also helps banks because their transactions can be carried out almost instantaneously which provides liquidity on demand.