Research confirms that Western Union is still testing and considering the use of Ripple (XRP) for remittances
As the entire world gradually transitions to digitizing payments, research has confirmed that the volume of global payments is greater than global GDP as the remittance industry grows steadily.
In an American Equity 2020 investigation by Credit Suisse, it was officially confirmed that one of the world's leading financial payment companies, Western Union, is studying and deliberating on the use of Ripple (XRP) for cross-border payment.
Research confirms that many have been observing that traditional means of payment such as SWIFT They are less than ideal due to transaction time and huge cost. However, the appearance of innovations like blockchain technology It helps lessen some of the drawbacks of C2B payments.
The findings added that fast and cost-effective cross-border payment technology like Ripple causes traditional media to face great competition. The Ripple platform offers solutions to some of the archaic means of payment problems with its instant transaction and low cost.
Companies like MoneyGram, Western Union, and others are trying to create innovations to match some of the services that fintech startups provide. MoneyGram is partnered with Ripple after the latter $ 50 million invested in trainers in a two-year deal.
Meanwhile, Western Union and some other companies like Transferwise managed to develop innovations and global treasury operations to offer real-time cross-border remittances at low cost, but it seems that it is not enough to abuse the new technology in the city.
"While equalization (clearing) can equalize volumes in high-volume developed market currencies (G10), and use traditional bank rails for the remaining amounts, the challenges remain in the lower-volume emerging currencies," research says.
After collaborating with Ripple, MoneyGram witnessed an increase in its valuation and transaction volume. Through the deal, MoneyGram pledged to use Ripple's liquidity On-Demand product, leveraged by XRP, to complete 10% of transactions between the Mexican and American payment broker.
Ripple has more than 300 financial institutions that use RippleNet technology worldwide. MoneyGram, a strong competitor to Western Union, is one of them.
Although tests of Ripple technology by Western Union have been far less optimistic, research confirms that the latter is still evaluating the former.
Western Union has a strong presence and partnership in more than 200 countries, numerous licenses, local market knowledge, compliance infrastructure, and a charming brand worldwide, characteristics that research rated as difficult to replicate.
However, while there is evidence that Western Union is still testing and observing Ripple (XRP) blockchain technology, Western Union may be wary of the security demand facing Ripple. The remittance service provider is likely to adopt XRP via RippleNet as well if it partners with Ripple.