A new Ripple-based international payment platform called SendFriend has announced that it would move from pilot-testing to full commercial use of Ripple’s xRapid in the 1st quarter of 2019. xRapid is software solution which uses the Ripple’s native token XRP as a liquidity vehicle for international payments.
SendFriend, which is also backed by MIT Media Lab, Barclays, and MasterCard, will allow Philippines emigrants to send money back home at much-reduced rates. The platform has reduced the remittance cost by over 60% of the average industry cost. Currently, the start-up is in the process of getting a money transmitter license in each state.
The project was the brainchild of MIT Media. They wanted to help the overseas workers send money back home using a cheap, fast and efficient solution.
According to the CEO of SendFriend David Lighton, the current banking system doesn’t offer the services that the firm needs. In a video, Lighton said SendFriend is the first US fully compliant cross-border payment company that is backed by blockchain.
xRapid grows in prominence
Ripple and its product xRapid have already proven its worth, demonstrating its ability to allow people and banks to transfer funds at extremely lower costs and in seconds. Recently, Ripple whales moved a colossal amount of Ripple (XRP) to escrow wallet. About $755 worth of XRP was moved. Each seven registered transactions took less than four seconds.
It is this power that SendFriend, as well as other remittance companies like Western Union and MoneyGram, wants to harness to grow their businesses and expand into cryptocurrency world.
In mid-2018, Ripple announced that financial companies that took part in their xRapid pilot programs reported increased speeds and big savings when using the xRapid product for on-demand liquidity. According to Ripple:
“xRapid eliminates the need for a pre-funded nostro account when executing a cross-border payment. It sources liquidity from XRP on exchanges around the world. As a result, cross border transactions occur in minutes and at a lower cost compared to traditional methods, which take days and incur high foreign exchange fees.”