Ripple, the open payment network, and currency exchange, has revealed the outcome of the first pilot for their xRapid technology— the company’s remittance solution for payment providers and financial institutions which are seeking to eliminate the delays that occur in cross-border payments while also dramatically reducing the cost.
Ripple has announced the results of its in-house xRapid solution, a technology which was created to modernize financial services by using high-powered blockchain-based solutions to increase the speed and lower the cost of global payments, lower obstructions to financial inclusion, and bring capital into the international economy.:
“Today, we’re a step closer to realizing these goals with xRapid. It eliminates delays in global payments while also dramatically lowering cost. xRapid leverages the technology behind the digital asset XRP, to make cross-border payments truly instant. Aggregated results from several pilots for xRapid are now available,” stated the company late last week.
Regarding the results, Ripple claims they proved to be positive, noting:
“For payments in the critical remittance corridor between the U.S. and Mexico, financial institutions using xRapid saw a savings of 40-70 percent compared to what they normally pay foreign exchange brokers. An average xRapid payment took just over two minutes, compared to today’s average of two to three days when sending cross-border payments. The portion of the transfer that relies on the XRP Ledger takes two to three seconds, with the additional processing time attributed to movement across the intermediary digital asset exchanges and local payment rails.”
Of course, no one would expect Ripple to announce unsuccessful results. Nonetheless, the first pilot test of xRapid indicates that the company’s XRP-powered technology has good prospects for the future.
What Is xRapid?
For those unfamiliar with xRapid, the technology works as follows:
[A] financial institution connects directly to digital asset exchanges in both the originating and destination corridors. The originating currency is exchanged into XRP which provides the necessary liquidity to power the final payment, and then in seconds that XRP is exchanged into the destination currency in the second digital asset exchange. Once this transaction takes place, the funds are sent out on the local rails of the destination country for payout. The transaction is tracked end-to-end, and the result is a cross-border payment that is cheaper and faster than ever before.
Many Powerful Partnerships
Over the past half year, Ripple has established many important partnerships.
The Japan Consortium will release an innovative smartphone app called “MoneyTap” in fall 2018, which will enable users to make instant transactions, 24/7. The app is built on Ripple’s blockchain technology.
Furthermore, Ripple announced last month five new collaborations with European and Asian businesses — FairFX (U.K.), RationalFX (U.K.), Exchange4Free (U.K.), UniPAY (Georgia), and MoneyMatch (Malaysia), which will all use xVia to enable fast transactions over RippleNet.
In recent developments, Coinone Transfer, a Coinone subsidiary, also joined the Ripple Network, and it plans on using xCurrent.
Obviously, not everybody is so hyped when it comes to Ripple and it’s blockchain-powered solutions. Many advocates of blockchain technology claim the company is too centralized and focusses on a cryptocurrency (XRP) that has very little use.
But in spite of the negative opinions some might have regarding Ripple and its currency, major announcements are expected from the company at Consensus 2018.