Ripple Saves Up About 80% On Money Transfer Fees
Ripple's XRP-based payment solution saves up to 80% on money transfer fees. This was stated by the SendFriend CEO, David Lighton.
— SendFriend (@sendfriendinc) December 12, 2019
SendFriend's activity is directed at residents of the Philippines who work abroad and want to transfer money to their family. The service allows users to make cross-border transfers with a minimum commission. At the end of 2018, SendFriend attracted investments from Ripple, Mastercard, and Barclays Bank. Earlier, the company announced the integration of the payment system in the xRapid platform.
David Lighton, said using On-Demand Liquidity (ODL) eliminates capital, which has a positive effect on fees. ODL uses XRP tokens to “connect two currencies to each other”, providing almost instant payments.
Lighton believes that high fees for cross-border transfers are an extremely serious problem. He noted that the issue is so acute that "a tenth of the Sustainable Development Goals is aimed at reducing the cost of these transfers."
Note, that the services of Ripple are used not only by local companies but also by very large enterprises. In August, one of the largest US banks, PNC, used the RippleNet network to make cross-border payments.
To process cross-border payments, Ripple products also use the MoneyGram money transfer system. Therefore, 10% of all transactions between the USA and Mexico are carried out using ODL.
Recall that in June Ripple invested $ 30 million in MoneyGram. Under the terms of the deal, Ripple reserved the right to purchase an additional stake of $ 20 million over five years. Last month, the company took advantage of this opportunity by increasing its capital in the money transfer system to 9.95% of ordinary shares.
In November, Ripple CEO Brad Garlinghouse said that 300 clients had already connected to the Ripple platform. He also emphasized that in October 2019, Ripple processed more transactions than in the whole of 2018. The project team noted that ODL also played a significant role in this. That allows customers to increase profit and meet the needs of their users.