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The Relationship of Ripple with Fleetcor and Japanese Banks
Ripple is constantly on the move to make more business corporations acquaintance. Fleetcor Technologies is going to create an international payment system in collaboration with Ripple. This partnership will pave the way for acceptance of Ripple in commercial transactions.
On 1st March 2018, Fleetcor had announced that they have joined a pilot program that uses the xRapid platform of Ripple. The objective is to join the hands of Cambridge Global Payments (Fleetcor’s international payments subsidiary) and blockchain solution firm Ripple in order to process more than $20 billion B2B transactions. The xRapid software has the capability to let the financial institutions communicate with each other and share crucial information regarding payments in real-time. This results in hassle-free instant settlements. The telecom giant IDT and Mercury, the financial services provider have already checked out xRapid for international transactions. Prior to these three institutions Cuallix, a Mexican giant has been using the platform of Ripple since 2017 to make and receive payments.
One reason behind the popularity of Ripple among such companies may be due to the cryptocurrency’s favoring of the blockchain centralization model. Almost all the crypto coins unlike XRP, favor the decentralized nature of blockchain.
Ripple, however, is still developing the features of xCurrent and xRapid. So, even if the platforms have advanced properties, it will take some time to utilize them fully in real-world applications. Moreover, banks that have partnered up Ripple use these platforms to reduce their workload rather than XRP. Brad Garlinghouse, CEO of Ripple said:
“For Ripple to grow, it needs large banks to buy its payment software and use its XRP cryptocurrency, a major challenge considering it must convince financial institutions to change how they’ve been doing business for years. The biggest obstacle in convincing banks to use Ripple’s services is that many banks have other IT-related projects that are a greater priority for them than Ripple”.
Ripple is also currently working with 61 Japanese banks on an application. Their objective is to reduce the time of public transactions. Thus, with the help of blockchain technology, the customers will be able to settle cash transfers at any time instantly. Initially, the mobile app can be used to conduct transactions to other bank accounts within Japan.
The beta testing is proposed to start in April 2018 while SBI Sumishin Net Bank Ltd., Resona Bank Ltd., and Suruga Bank Ltd. plan to start the services to their customers by this year itself. The statement of Ripple reveals that the customers can make payments by simply using their bank account number or phone number, or by scanning QR codes without having to limit themselves by the usual time constraints that traditional bank transfers have. The current banking system of Japan processes cash transfers on weekdays only up to 3 pm. Rest of the 61 Japanese banks will roll out the service after these three financial institutions.
The aim of Resona Bank is to “contribute to promoting cashlessness while improving customer convenience and reducing the cost to society,” as said by the leader of the lender’s settlements group, Yoichiro Higuchi.
SBI Ripple Asia (a joint venture of Japan’s SBI Holdings and Ripple) thus continues to come up with new ways of benefiting both the banks and its customers to make fast transactions with the help of blockchain technology.
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