No doubt, if you’ve bought a home, operate a business, or have family and business partners living overseas—you’ve wired money from your bank account to another bank account. If you wired money overseas or to another country, then you may have become familiar with the SWIFT code.
SWIFT, or Society for Worldwide Interbank Financial Telecommunications, is a vast messaging network used by banks and other financial institutions to quickly, accurately, and securely send and receive information, such as money transfer instructions.
Money Transfer Comparison writes that according to the US Treasury Department, the “SWIFT international payment network handles more than $1.25 quadrillion dollars per annum.”
With the ease of travel and globalization it’s not uncommon for businesses to import supplies, goods, and services across the globe. Though it’s increasingly common for businesses to source goods and services internationally, the cross-border payment system hasn’t changed in decades. Indeed making cross-border payments can take days and be costly under the current SWIFT system.
Now, with Ripple’s XRP and on-demand liquidity—cross border transfers may take just seconds, with a very low fees.
Finastra Joins RippleNet
According to Cointelegraph Ripple announced a new partnership with Finastra that will allow their customers to transact with RippleNet for faster and lower cost cross-border payments. This, will provide “over 200 financial institutions on RippleNet … access to Finastra’s network of banks, allowing mutual customers to access and partner with each other.”
With Ripples on-demand liquidity, which leverages Ripple’s cryptocurrency XRP for cross-border payments, users can send international payments with “end-to-end tracking and monitoring of the fees, transaction time and status.”
Finastra is a financial technology company based in London formed in late 2017, with offices in 42 countries and $2.1 billion (USD) in revenues. Finastra has over 10,000 employees, and over 9,000 customers across 130 countries. (Wikipedia)
— Rodebrecht XRP (@RodebrechtD) November 1, 2019
Ripple Tops 300 Customers
As reported by Ripple, they have surpassed 300 customers. In 2018, Ripple announced on-demand liquidity, or ODL—leveraging XRP to eliminate “pre-funding in cross-border payments”. In just under a year, 24 customers have signed on to use the product.
According to Thomas Silkjær in Forbes Brad Garlinghouse, CEO of Ripple says that “There has been a lot of skepticism about how XRP can be used for liquidity, and as the industry continues to try to find use cases around blockchain, we have more than 20 customers using XRP for cross-border liquidity and are benefiting from that”,
He adds that while ODL was initially launched with corridors in Mexico and the Philippines—they are now live in Australia, and Brazil will follow soon. Moreover, just this past summer, MoneyGram— one of the largest money transfer companies—went live with ODL.
List of Ripple Customers
Banks. As of October, Publish Ox reported 118 Ripple bank customers. The following is a list of some of the more known banks in the U.S.
Bank of America Merrill Lynch
Bank of Indonesia (Central bank)
Bank of Thailand (Central bank)
Erste Group AG
PNC Financial Services
Remittance/Money Transfer Firms. A total of 16 remittance and money transfer firms were reported. Here are three of most widely known money transfer brands in the U.S.
American Express FX International Payments
Source: Publish Ox
The current price of XRP is $0.22, down from $0.26 on November 18.
With Ripple’s international currency transfer—using ODL with transactions which can take place in seconds and have a very low cost—one might wonder if it will replace traditional bank wires using SWIFT, or replace SWIFT altogether. The momentum seems to be pointing in that direction.
While Ripple executives are optimistic, they remain cautious. This is perhaps best expressed by Brad Garlinghouse:
“I think the people who are focused on the hype are trying to sprint – Ripple is very much focused on the marathon. And I think we are at mile marker two of the 26 miles. We have 24 miles ahead of us.”