UK-based international money transfer company Xendpay is the newest member to join Ripple Net, which will give Ripple access to markets in Bangladesh, Malaysia, Philippines, Vietnam, Indonesia, and Thailand.
Ripple posted on its blog that Xendpay provides “some of the most competitive rates on cross-border money transfers” which also offering customers “the option to waive fees with its Pay What You Want service.” The Pay What You Want feature allows customers to adjust the transfer fee to what sum they think is appropriate for the transfer they made.
“Most of our customers are migrants who are sending money back home. This money is vital to support their families: to pay rent or mortgage, electricity bills, medical fees and education costs. Being an online service allows us to reduce our overheads and pass the savings on to these clients, for whom every penny counts.”- stated Xendpay’s Head of Product Innovation, Bhavin Vaghela.
The post also read that Xendpay has gained popularity in “established and growing migrant communities, including the U.K. and Europe, as well as Canada, South Africa and India.”
Regarding Xendpay’s “Pay What You Want” feature, Ripple made the following statement:
“What makes Xendpay truly unique is the company’s Pay What You Want feature that allows customers to waive fees on transfers totaling around $2,500 over a calendar year. This ensures that the full extent of a customer’s hard work is appreciated by their families. The Pay What You Want feature also extends to businesses, who can waive fees on transfers totaling around $5,000 per calendar year.”
Vaghela further explains why the feature is so attractive to the user base of Xendpay:
“Our suggested fees start at GBP3.50, which is already low for a cross-border payment. Though it may not seem like much, when you translate that into a currency like Vietnamese Dong, it’s a significant amount of money. Our customers can choose to pay our suggested fee or change it to one they feel is fair.
I think of our fees as similar to providing a tip. If you feel like you’ve been treated well, received a good rate and enjoyed the experience, you might pay the recommended rate. We’ve even had clients pay us more.”
Xendpay discovered that sending other fiat currencies other than USD to new countries was a difficult move due to the fact that transacting with smaller partnerships required direct partnerships with local banks as well as setting up and managing a complex API system for each fiat currency.
But even with an established local partner, such payments would take days to finalize.
This is the main reason Xendpay joined Ripple Net, as the processing time for cross border payments was done in real-time thanks to Ripple’s xCurrent technology.
“When we sent Thai Baht, it took 3 to 4 days for the payment to be processed. Thanks to RippleNet, a customer in Germany can log onto our platform at 3 AM on a Sunday morning and the money will be in their beneficiary’s bank account in Thailand within an hour. More than 90 percent of our recent payments to Thailand over RippleNet have been delivered within 10 minutes.”
Ripple’s global payment network reduces the extra procedures and complications with remittance:
“Previously we had to create a whole business case for each partner. RippleNet reduces that complication and friction. There’s a built-in trust factor, which allows us to get to market quicker. We were unable to offer currencies like Malaysian Ringgit or Bangladeshi Taka before. Now that it’s easier to connect with local partners, we can provide our clients with more local currencies and, therefore, see new growth in those corridors.”
Featured Image: FXCompared