This May 10th, Ripple (XRP) team issued an official statement showing the results of its pilot program for international transfers and payments, called xRapid. According to Ripple, payments between financial institutions that were made between the United States and Mexico and that used xRapid reduced fees by 40% to 70%.
They also explain that the payments that used xRapid took on average about 2 minutes to materialize, which is a huge reduction considering that cross-border payments today take about 3 days, on average.
They also explain that the portion of the time it takes for Ripple blockchain transfers is only 2 to 3 seconds and that the rest of the time it takes to complete the transfer is attributed to transactions involving cryptocurrency exchange houses and local payment methods involved in this process.
Ripple (XRP) xRapid cross-border payments platform shows a great reliability
In summary, xRapid works as follows. The financial institutions involved in the transaction are connected to cryptocurrency exchange houses, the currency in which the cross-border payments are made is initially converted into XRP, and in seconds it is received and converted into the local currency of the country of the financial institution which receives the payment.
In this way, Ripple explains that cross-border payments are made more efficient, faster, and at lower fees.
Creating more efficient solutions for payments and money transfers in today’s financial system is one of the goals that the Ripple team has focused on and hopes that Ripple (XRP) will be more and more accepted.
A few days ago, also, it was reported that Coinone Transfer, a subsidiary of the Coinone cryptocurrency exchange operator, will be using a Ripple (XRP) blockchain solution to offer its customers a new and better service with which they can send remittances throughout the Asian region faster and cheaper. Besides, different banks and big financial institutions have already adopted Ripple cross-border payments solutions, such as xRapid.
Jackson Bey was born and raised in Lethbridge Alberta but moved east when he was 22. Apart from running his own consulting firm. Jackson spends his time canoeing the many lakes of Ontario. As a financial journalist Jackson has published stories for CBC Business Online, as well as Buzz Feed and Motherboard. As a contributor to Billionaire 365, Jackson mostly covers markets and trade.